Annual
Report
2023
3 Letter to the shareholders
4 Highlights 2023-2024
5 Key figures
6 Group figures 2023
7 Operational structure
8 Lighthouse Navigation
11 ESG summary
16 Directors’ report 2023
21 Fleet overview
23 Consolidated financial statements
24 Consolidated statement of income
25 Consolidated statement of comprehensive income
26 Consolidated statement of financial position
28 Consolidated statement of cash flow
29 Consolidated statement of changes in equity
30 Notes to the consolidated accounts
56 Belships ASA financial statements
57 Income statement
58 Balance sheet
60 Cash flow statement
61 Notes to the parent accounts
72 Auditors report
79 Corporate governance
87 Corporate social responsibility
FINANCIAL CALENDAR 2024
Annual General Meeting 8 May
Result for the 1st quarter 8 May
Result for the 2nd quarter 22 August
Result for the 3rd quarter 14 November
Content
2
We are pleased to present you with our Annual Report for
2023 which represents a year of solid profitability, with a
net result of USD 86m and dividends to the shareholders
totalling USD 56m. We maintained a high degree of
contract coverage which reduced short-term risks and we
continued to develop and expand our fleet for the future.
We believe we have a strategy aligned for improving
sustainability and navigating volatile shipping markets.
Five years have passed since the merger between
Belships ASA and the Lighthouse Group. Our goal was
to develop the company through strategic investments
aimed at expansion, and to obtain competitive returns
for our shareholders. Over the past five calendar years,
the total return (as measured by the increase in the value
of the share plus dividends) has been 436 per cent. The
dividends alone amount to 132 per cent of the share
price from the time of the merger, thereby surpassing full
repayment of equity.
The past year was dominated by escalating geopolitical
tensions, with the devastatingly prolonged war in
Ukraine and military conflicts in the Middle East region,
in particular. Despite these challenges, we were able to
keep our ships and crew out of harm’s way and did not
encounter any security incidents during the operation of
our vessels.
Amidst these challenging circumstances, the shipping
industry, with its vessels and seafarers, plays a crucial role
in facilitating the global supply chain for food, energy, and
materials. At the heart of global trade, dry bulk shipping
is instrumental in ensuring the efficient transportation of
essential commodities.
We take the environmental impact of shipping seriously
and we support initiatives aimed at reducing the
carbon footprint within the maritime industry. It is
encouraging that we have made progress through the
modernisation of our fleet and we strive to achieve
further improvements.
In 2023, we entered into agreements to acquire 8x
Ultramax newbuildings of 64 000 deadweight, scheduled
for delivery between 2024 and 2027. The Japanese-
designed bulk carriers entering our fleet represent the
highest quality and lowest fuel consumption available
today and will contribute to reducing Belships’ carbon
emissions on an intensity basis.
Dry bulk markets display promising supply and demand
prospects for the next few years. Belships is well
positioned as a shipowning and operating company
stocklisted in Oslo, with a fleet of 38x modern Supra/
Ultramax vessels, including newbuildings.
Financial discipline remains fundamentally important to
our strategy, and with robust contract coverage for 2024,
paired with fleet financing secured for many years ahead,
we expect to generate free cash flow and continue to pay
quarterly dividends.
We firmly believe that good corporate governance and
transparency creates a more valuable business. Our goal
is to generate value from shipowning and operating, and
to return capital competitively over time.
We look forward to serving you and navigate towards the
next milestone.
Peter Frølich Lars Christian Skarsgård
Chair of the Board Chief Executive Officer
Letter to the shareholders
3
BELSHIPS
ANNUAL REPORT 2023
Highlights 2023-2024
Demonstrating ability to create value
Financial Strength and Sustainability
Prepaid about USD 40m of bank debt, increasing
the number of unencumbered vessels to four.
Most of Belships’ debt, including lease liabilities,
has been secured until 2030 with fixed interest
rates, reducing the Company’s exposure to volatile
financial markets.
Newbuilding Program
Entered into agreements to acquire 8x new
Ultramax bulk carriers under construction in Japan
2024-2027. All financed through Japanese leases,
requiring no direct cash investment and resulting
in no impact on dividend capacity before delivery.
Strategic Partnership and Divestment of
Technical Management Business
Belships agreed to divest the ownership of Belships
Management Singapore (BMS) to V.Group.
Belships also entered into a long-term partnership
together with V.Group, and BMS remains the
exclusive provider of ship management services.
Declared Dividend Distribution
NOK 2.35 per share (USD 56m).
Attractive and Uniform Fleet
The newest and most modern fleet of its kind,
with 38x Supra/Ultramax bulk carriers including
newbuilding.
Number of shareholders
~4 900
Market capitalisation
USD ~500m
Commercial Platform
Continued strong performance from Lighthouse
Navigation, achieving consecutive profits in every
quarter.
4
USD 1 000 Footnote 2023 2022
INCOME STATEMENT
Operating income 427 764 725 953
EBITDA 1 157 612 221 544
EBIT 2 112 539 206 168
Net result before tax 84 996 176 960
Net result for the year 86 240 175 060
BALANCE SHEET
Non-current assets 745 370 788 203
Current assets 187 495 212 090
Total assets 932 864 1 000 293
Equity 305 561 297 335
Non-current liabilities 544 160 556 931
Current liabilities 83 144 146 027
Total equity and liabilities 932 864 1 000 293
KEY FINANCIAL FIGURES
Cash and cash equivalents 128 276 139 984
EBITDA 1 157 612 221 544
Interest expenses 33 184 26 106
Interest coverage ratio 3 3.39 7.90
Current ratio 4 2.26 1.45
Net profit ratio 5 0.20 0.24
EQUITY
Share capital 59 466 59 466
Equity ratio 6 0.33 0.30
Return on total assets % 7 12.67 20.30
Return on equity % 8 28.22 58.88
KEY FIGURES SHARES
Market price USD 1.81 1.45
Market price NOK 18.38 14.28
Number of shares 253 136 666 253 136 666
Diluted average number of shares (excluding treasury shares) 254 421 458 253 774 300
Equity per share USD 9 1.21 1.17
Earnings per share USD 0.34 0.69
EBITDA per share USD 0.62 0.87
Price/earnings ratio 10 5.33 2.10
Price/book ratio 11 1.50 1.23
Price/EBITDA ratio 2.92 1.66
Key figures
As at 31 December
1) EBITDA – is defined as operating result adjusted for depreciation and amortisation, other gains/(losses), interest income, interest expenses and
other financial items
2) EBIT – is defined as operating result adjusted for interest income, interest expenses and other financial items
3) Interest coverage ratio – is equal to earnings before interest and taxes (EBIT), divided by interest expenses
4) Current ratio – is defined as total current assets, divided by total current liabilities
5) Net profit ratio – is defined as result after taxes, divided by operating income
6) Equity ratio – is equal to shareholders’ equity including non-controlling interest, divided by total assets
7) Return on total assets – is defined as result before taxes adjusted for interest expenses, divided by total capital
8) Return on equity – is defined as net result for the year, divided by equity
9) Equity per share – is defined as total equity, divided by number of issued shares at end of period
10) Price/earnings ratio – is defined as market price of share, divided by earnings per share
11) Price/book ratio – is defined as market price of share, divided by equity per share
Time charter equivalent (TCE) – is defined as freight revenues less voyage expenses divided by the number of available on-hire days
5
BELSHIPS
ANNUAL REPORT 2023
Belships is a shipping company listed on the Oslo Stock Exchange and is a fully
integrated shipowner and operator of dry bulk carriers. Our fleet comprises modern
Supra/Ultramax vessels, averaging around four years of age. All key functions are
managed internally by a seasoned management team with a proven track record.
Belships ASA
Group figures 2023
Operating Income
427 764
thousand USD
EBITDA
157 612
thousand USD
Net result
86 240
thousand USD
Cash break-even 2023
10 900
USD per shipday
Sailed distance
1 450 000
nautical miles
Number of shipdays
11 000
Average year built
2020
Financial highlights
Consolidated balance sheet as per December 31, 2023 ($ million)
Assets
Total
Ships
Other assets
Cash
Total
Equity
Interest bearing debt
Other liabilities
128.3
73.0
731.6
932.9
63.9
563.4
305.6
932.9
631
Total
Ships
Other assets
Cash
Total
Equity
Interest bearing debt
Other liabilities
128.3
73.0
731.6
932.9
63.9
563.4
305.6
932.9
631
Equity and liabilities
People
Lighthouse Navigation: 102
Ship
management: 27
Belships ASA: 8
Seafarers: 494
Total
Ships
Other assets
Cash
Total
Equity
Interest bearing debt
Other liabilities
128.3
73.0
731.6
932.9
63.9
563.4
305.6
932.9
631
6
BELSHIPS
ANNUAL REPORT 2023
Operational
structure
Offices
Lighthouse Navigation
Commercial Operator
Belships
Shipowning
50.01 %100 %
36 Ultramax Ships
2 Supramax Ships
Belships ASA
Oslo
Lighthouse Navigation
Bangkok, Oslo, Singapore, Melbourne
7
BELSHIPS
ANNUAL REPORT 2023
Lighthouse Navigation is a dry bulk operating company with a long track record
of positive results. Lighthouse provides chartering and operational services for
the Belships fleet, alongside managing a fleet of chartered-in tonnage across the
Supramax, Ultramax, and Handysize segments.
Lighthouse Navigation
Commercial operations
Lighthouse Navigation has its roots and experience tracing
back to the 1990s. Since merging with Belships ASA in 2018, the
Company has evolved and expanded its commercial platform.
Lighthouse Navigation collaborates with a wide range of
international charterers and traders engaged in the freight markets
for dry bulk commodities. With an annual volume of about 10
million tonnes and an annual turnover surpassing USD 350 million,
the Company boasts a global presence, with offices in Bangkok,
Oslo, Singapore, and Melbourne, catering to clients worldwide.
Specialising in commercial management for vessels owned
by Belships ASA and other clients, Lighthouse Navigation also
oversees Orient Asia Lines BV (OAL), a subsidiary since 2010.
OAL manages a liner operation, providing regular service
from Southeast Asia to the Middle East and the Eastern
Mediterranean. Their expertise lies in transporting forestry
products such as sawn timber, wood pulp and paper, plywood,
and medium density fibreboard (MDF), along with handling
project cargoes, steels, and machinery.
Additionally, Lighthouse Navigation controls Siam Thara Agency
Co., Ltd, established in January 2014. Siam Thara Agency offers
comprehensive advice on ports, logistics, and commodities for
both export and import operations in Thailand, distinguishing
itself as a leading agent in the region.
With a dynamic approach, Lighthouse Navigation aims to
sustain its growth trajectory, continually expanding its business
and operations to accommodate parcel and commodity trades.
EBITDA and Net Result
Strong financial development and a profitable track record.
EBITDA - mUSD Net Result - mUSD









19
6.5
5.7
64.1
60.0
27.2
20 21 22 23









19
2.8 3.4
56.3
54.5
22.1
20 21 22 23









19
6.5
5.7
64.1
60.0
27.2
20 21 22 23









19
6.5
5.7
64.1
60.0
27.2
20 21 22 23
Lighthouse Navigation employees 102 Average number of vessels operated 90
8
BELSHIPS
ANNUAL REPORT 2023
Lighthouse Navigation
Commercial operations
9
10
ESG summary
Sustainability at
Belships
At Belships, we work to ensure that ESG factors are
considered in everything we do. We have established
policies and procedures to ensure consistent ESG
management and risk mitigation.
The overall responsibility for ESG compliance and
performance lies with the Board of Directors, and
with the CEO ensuring implementation of the Board’s
decisions in our daily operations.
Belships produces an annual sustainability report (see
www.belships.com) that can be read in conjunction with
this ESG summary. The Belships’ Sustainability Report
meets the disclosure requirements of the Sustainability
Accounting Standards Board (SASB) Marine
Transportation Standard (2018) and the Norwegian
Shipowners Association’s Guidelines for ESG Reporting
in the Shipping and Offshore Industries.
ENVIRONMENT
Belships remains strongly committed to environmental
stewardship and sustainable operations.
Our operations are guided by environmental standards,
adhering to all environmental regulations.
Belships closely monitors the development of all
environmental regulations. We will continue to comply
with all legislation and follow best practices to minimise
our impact on the environment.
GHG Emissions
As concerns for climate change continues to grow, major
efforts will be required throughout the sector to meet
the IMOs 2050 GHG reduction ambition. In 2023, the
IMO adopted the 2023 Strategy on Reduction of GHG
emissions from ships, marking a significant step towards
decarbonising international shipping. Belships support
this strategy through ongoing operational improvements
and investment decisions.
The EU is also striving to reduce emissions within the
shipping industry. In January 2024, the EU’s Emission
Trading System (EU ETS), will be extended to include
CO2 emissions from large ships over 5.000 gross tonnage
entering EU ports.
Belships currently has a modern uniform fleet of 38
bulk carriers, including eight newbuildings, with an
average age of about four years. Over the last four years,
Belships has completely modernised its fleet, and we
Belships is determined to be proactive and contribute to a sustainable shipping
industry through modernisation and transparency. Sustainability is central to our
business model, focusing on long-term value creation and responsible participation
in the global shipping market.
Environment
◉ Reducing emissions
◉ Energy efficiency
◉ Ecological impact
Social
◉ Health and safety
◉ Human and labour rights
◉ Diversity
◉ Training and development
Governance
◉ Anti-corruption
◉ Data security and privacy
◉ Sustainable procurement
11
BELSHIPS
ANNUAL REPORT 2023
have phased out all ‘non-eco’ design vessels. Therefore,
we are of the opinion that we are operating the best
possible existing vessels available in the market in our
segment.
In adherence to the IMO 2023 Strategy for reduction
of GHG emissions from ships, Belships’ vessels meet
the new emissions standards without necessitating
further investments. This compliance showcases the
competitive edge we hold through the ownership of a
modern fleet.
In 2023, our scope 1 GHG emission were 374 378 metric
tons carbon dioxide equivalents (CO
2
e), measured using
a financial control approach (2022: 372 787). The minor
increase of 0.4 per cent increase in total emissions seen
in 2023 was a result of operating a larger fleet.
Belships continues to see a positive development in
energy efficiency and reduction in emissions on an
intensity basis. The AER improved by 12 per cent.
All emissions data are verified by DNV.
Emissions 2023 2022 2021
GHG emissions
(tonnes CO
2
e)
374 378 372 787 309 159
SO
X
(tonnes) 866 971 847
NO
X
(tonnes) 7 021 8 496 6 981
PM (tonnes) 633 607 503
Emissions indices
1
2023 2022 2021
EEOI (g CO
2
e/
tonne-nm)
7.27 8.05 8.46
EEDI (g CO
2
e/
tonne-nm)
3.67 3.64 3.94
AER (g CO
2
e/dwt-nm) 4.26 4.85 4.89
Climate risk
Our industry is impacted by climate change, such as
rising sea levels, more frequent and severe storms and
changes in temperature and weather patterns. This may
affect our operations as well as the infrastructure and
supply chains supporting the shipping industry.
Belships acknowledge the importance of climate risk
and its impact on the future of the shipping industry.
We take steps to mitigate our climate risk and reduce
our carbon footprint by investing in more fuel-efficient
vessels. We assess our divestment and investment
strategy on a regular basis, taking into consideration
the fleet emission profile and how the Company may
be impacted by stricter regulations, technological
development, market demand and physical climate
risks. Decarbonisation of the fleet has been a part of
our strategy ever since we commenced a major growth
and modernisation strategy in 2019. From a financial
perspective, energy efficiency and a low emission fleet
means flexibility in terms of speed and potentially lower
carbon tax.
We will continue to assess our climate risk to ensure that
potential risks are mitigated.
Biodiversity and ecosystems
Marine transportation may have a negative impact on
biodiversity and ecosystems if not managed properly.
We recognise our responsibility to safeguard the oceans
and have policies and procedures in place to comply
with applicable rules and regulations.
Our focus areas are on managing fuels and chemical
substances to avoid spills into water, proper waste
management and to avoid the spread of invasive species
by meeting the requirements of the Ballast Water
Management Convention.
In 2023, Belships maintained its track record of zero
incidents related to untreated ballast water, oil spills or
waste disposal. All vessels are fully fitted with Ballast
Water Treatment Systems.
1 EEOI – Energy Efficiency Operating Index, EEDI – Energy Efficiency Design Index (for newly acquired ships), AER – Annual Efficiency Ratio.
See www.imo.org for further information.
12
BELSHIPS
ANNUAL REPORT 2023
SOCIAL
Belships is continuously working towards fostering an
engaging, safe and inclusive work environment where
we take action to secure that all workers have decent
working conditions and that we continue to improve the
work environment for all our employees.
Creating a responsible safety culture
We are dedicated to ensuring the safety of our
operations for our employees, our customers and any
personnel associated with our operations. Our approach
to health and safety is documented in Belships’ Health
and Safety Policy.
Management communicates frequently with company
personnel to promote safety and instil safe work habits
through the use of company media directed at, and
training of, both our crew and shore-based personnel.
In 2023, Belships was able to uphold our track record
of no serious injuries or work-related fatalities. Our lost
time injury frequence (LTIF) decreased from 2.00 to 0.44.
All recorded injuries were minor.
Injury rates 2023 2022 2021
LTIF 0.44 2.00 1.00
Serious injuries 0 0 0
Fatalities 0 0 0
Our personnel management structure
Belships Management, the former subsidiary based
in Singapore, has been at the forefront of crewing and
technical management of Belships’ fleet. On 30th of
June 2023, the branch came under the ownership of
V.Group.
Now operating under the V.Group umbrella, Belships
Management remains the exclusive provider of ship
management services for Belships. A dedicated and
well-trained ship and onshore team monitors the health,
safety, environment and quality performance of our fleet.
Employee development and welfare
Belships’ employees are our key resource and essential
to the future success of the Company. Our focus is on
creating favourable employment conditions which in
turn lead to the attraction and retention of the right
employees. A key component to our approach is the
investment we make in the training and development of
our personnel. We continuously develop and implement
crew welfare initiatives to meet our goal of maintaining
high retention rates and thereby create safe and high
performing vessels. In 2023, our retention rates for
officers and ratings were at 98 per cent.
All crew are provided wages, benefits and conditions of
work in line with industry standards. All crew are covered
by the NISCBS union agreement.
Retention rates 2023 2022 2021
Shore-based
personnel (Belships
Administration)
87% 100% 90%
Officers 98% 98% 83%
Ratings 98% 99% 80%
Human and labour rights
Good and safe working conditions are the foundation
for how we approach human rights management
within the Belships Group. Our impact goes beyond
our workforce and seafarers and can reach across the
globe, through the trade and operation of our vessels,
with suppliers of goods and services that take part in
our value chain. Belships supports and respects the
human rights of all individuals and groups that may be
affected by our operations. Our commitment is guided
by internationally recognised labour and human rights
standards as defined in the International Bill of Rights,
the ILO Fundamental Conventions on Labour Standards
and the UN Guiding Principles on Business and Human
Rights. We expect our suppliers to operate at the same
ESG standards as we do.
The Norwegian Transparency Act came into force in
July 2022. The law requires businesses to carry out
human rights due diligence (HRDD) throughout their
supply chain. We have focused our effort on ensuring
compliance with the law. An important first step in
HRDD is to identify salient human rights issues. These
are issues where Belships may have the biggest adverse
impacts on people if not managed properly. In 2023,
we started developing our HRDD processes, including
integrating responsible business practices within the
Company to manage the identified risks. Our Human
Rights Policy, which was published on our website in
2022 provided a basis for this work.
There were no reported incidents related to human and
labour rights in 2023.
13
BELSHIPS
ANNUAL REPORT 2023
GOVERNANCE
The Belships Board is responsible for strategic oversight
of all company activity, including sustainability. The
Board of Directors is guided by Belships’ Corporate
Governance Policy, which is publicly available on our
website. Our governance procedures and related control
mechanisms are essential to minimise ESG risks and to
guide the implementation of ethical business practices.
Belships has a zero-tolerance policy for corruption in
any form. Our stance on anti-corruption, as well as
our policies for ensuring that employees and business
partners adhere to high standards of business and
personal ethics, are laid out in our Code of Conduct.
Our Code of Conduct is available online and circulated
internally through ISM. Our efforts to combat corruption
includes regular anti-corruption training to all required
crew throughout the year. There were no reported ethics
or corruption incidents in 2023 (2022: 0).
Employees who observe or become aware of a situation
that they believe to be a violation of the Code of
Business Conduct are to report on such incidents.
There were no whistle-blowing reports made in 2023
(2022: 0).
Data privacy and security
Protecting employee, customer and company data held
at Belships is critically important to us. We want our
employees and business partners to be confident that
their data is safe and secure, and we are transparent
in how we use it. We are committed to doing the right
thing when it comes to how we collect, use and protect
data. We comply with all applicable data privacy and
protection requirements in the countries in which we
operate, including the EU’s General Data Protection
Regulation (GDPR).
With the Company becoming increasingly digital as we
employ more technologically advanced and sophisticated
software, we have invested in secure systems and
professionals to protect our assets against cybercrime in
addition to adopting new regulatory requirements.
There were no reports of data privacy or security
breaches in 2023 (2022: 0).
14
BELSHIPS
ANNUAL REPORT 2023
15
Directors’ report 2023
Growth and profitability
The dry bulk market 2023
Supramax spot market rates started the year at USD
10 600, then dropped to a low of about USD 7 000 in
mid-February, a seasonally low period for dry bulk.
Fundamentals had weakened from the previous
year, with somewhat lower rates of volume growth.
Nevertheless, the Supramax spot market rallied to a high
of almost USD 15 000 by the end of March, driven by a
strong upturn in China’s demand for coal and iron ore. As
China’s demand slowed together with rest of the World,
the markets declined. Congestion levels then began
to rewind, with less waiting time effectively increasing
vessel capacity supply. The Supramax spot market was
painfully weak through the summer, bottoming in early
August at around USD 8 000. Thereafter, fundamentals
improved considerably, and a continued upturn followed.
The market peaked at over USD 17 000 in December,
retracting somewhat towards year-end. The new Baltic
Ultramax Index commenced publishing in 2023 and,
albeit not based on identical routes as the Supramax
index, averaged at a USD 2 000 premium to the BSI-58
index referenced here above.
Overall shipment volumes in the Supra/Ultramax
segment were very high in 2023, almost 10 per cent
higher than in 2022, and with the three last quarters of
2023 recording successive all-time high records. The
growth was primarily driven by Coal (+20 per cent), Iron
Ore (+80 per cent), and Steel products (+7 per cent).
This all related to China’s strong import demand and
the country’s surge in steel product exports. Shipment
volume growth was also positive in other commodity
groups, with minor bulks, fertilisers and grains – all up
about five per cent. Breakbulk shipments, however,
remained unchanged. The Supra/Ultramax segment
saw the highest shipment volume growth of all the dry
bulk segments in 2023.
Total dry bulk shipment volumes,across all sizes were up
by 3.7 per cent, while total ton-time growth (calculated
as shipment volumes multiplied by average voyage
duration) was up by 3.1 per cent. The Supra/Ultramax
market was therefore weighed down by lower shipment
volume growth in the larger size segments, paired with
lower average voyage duration and congestion reversal
compared to 2022.
In 2023, vessel deliveries concluded with a total of 140
ships, accumulating 8.6 million deadweight tonnage
(dwt), a notable increase from the previous year’s figures
of 97 ships totalling 6 million dwt. As of April 2024, the
current count stands at 24 ships delivered, amounting
to a total of 1.5 million dwt with approximately 150
ships still slated for delivery throughout 2024. Next year,
about 140 ships with a total dwt capacity of 9.1 million is
expected to deliver.
The precise number of deliveries is subject to change
due to potential delays in construction, cancellations of
orders, or inaccuracy in reporting. Fleet growth ended at
3.9 per cent in 2023, and is likely to remain around the
same level in 2024, according to Fearnleys. The current
ratio of the orderbook to the existing fleet stands at
about 8 per cent. In 2023, the number of newbuilding
orders placed reached 173 ships, marking an increase of
about 15 per cent compared to 2022.
The number of ships delivered each quarter is compared
against the existing fleet of Supra/Ultramax vessels
currently afloat, numbering about 4 100 in total. The
orderbook for dry bulk remains close to all-time lows,
hovering around 8 per cent. Relatively low newbuilding
activity persists in the dry bulk sector, largely due to
uncertainty surrounding fuel and propulsion systems,
which limits new orders. Additionally, higher input costs,
full orderbooks, and sustained high demand in other
vessel segments influence shipyard dynamics. Delivery
slots at reputable shipyards are increasingly scarce, with
reports of new orders extending into 2027 and even
2028. A potential lead time of four years for a bulk carrier
is unprecedented.
Operations
Belships currently has a modern uniform fleet of 38 bulk
carriers, including eight newbuildings, with an average
age of about four years. All ships operated satisfactorily
16
BELSHIPS
ANNUAL REPORT 2023
without significant unscheduled off-hire. The operating
expenses continued at a competitive level.
Ship transactions during the year include delivery of the
BELMONDO newbuilding, and the sale of BELVEDERE.
During 2023, Belships entered into agreements for the
acquisition of eight newbuilding vessels all fully financed
as part of the transactions.
Net earnings in 2023 per ship for the entire fleet amount
to USD 18 992 versus BSI index of USD 11 240 gross per
day. Relative performance versus spot indices is affected
by a high number of fixed period time charter contracts
that contribute to our coverage for 2024 and 2025 at
levels far above current market rates.
In addition, Lighthouse Navigation operated on average
about 60 ships on short-term charter during 2023.
Results
The Group had an operating income of USD 427.8m in
2023 (USD 726.0m), giving an EBITDA of USD 157.6m
(USD 221.5m) and a consolidated operating result of
USD 112.5m (USD 206.2m). Net result for the Group was
USD 86.2 (USD 175.1m). The parent company’s net result
for the year was USD 36.5m (USD 116.5m).
The Board proposes the result for the year allocated as
follows:
Transfer to other retained earnings: -36.5m
Total allocations: -36.5m
Financial and Corporate Matters
At the end of 2023, the book equity ratio was 33 per cent.
Value-adjusted equity ratio is significantly higher. Interest
bearing bank debt amounted to USD 102.4m and lease
liabilities amounted to USD 461.0m. The consolidated
cash balance was USD 128.3m.
The Board considers the Group’s solvency and financial
position to be sound. Cash flow from operations,
combined with the total available liquidity, is expected
to be more than sufficient to finance the Group’s
obligations in 2024.
At the end of each reporting period, the Company
assesses whether there are any impairment indicators
present. The Company has concluded that the decline
in freight rates seen in 2023 is an impairment indicator
pursuant to IAS 36. Consequently, Belships carried out
an impairment test of ships owned or recognised as
right-of-use assets at the end of the quarter.
Recoverable amounts were higher than carrying
amounts for all ships and no impairments were
recorded.
At the end of 2023, Belships held 371 800 treasury shares
at an average cost of NOK 10.70 per share. The CEO held
5 000 000 options while outstanding employee share
options totalled 600 000 at year-end.
The Group’s primary market risk exposure is
predominantly tied to fluctuations in freight rates, with
secondary exposure to changes in interest rates and
fuel prices. Belships aims to minimise counterpart risk
and time charter contracts are entered into with highly
reputable charterers. The Group had no research and
development costs in 2023. All owned ships are under
the ownership of Norwegian companies, and the
majority of the Company’s operations in Norway are
within the Norwegian tonnage tax regime as of year-end.
The Group had deferred tax liabilities of USD 6.5m as at
31 December 2023.
Going Concern
The annual accounts are presented on a going concern
basis in accordance with § 3 – 3 of the Norwegian
Accounting Act. The Group’s liquidity reserves are
considered robust. Current activity is expected to
generate sufficient liquidity to cover current debt
and operating expenses throughout 2024. Based on
this the conditions for a going concern are in place.
The consolidated accounts have been prepared in
17
BELSHIPS
ANNUAL REPORT 2023
accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU.
The information in the accounts gives a true and
accurate representation of the Company’s and the
Group’s assets, liabilities, financial position, and results.
The annual accounts give a fair view of the development,
profit, and overall financial position of Belships ASA and
describe the most significant risks and uncertainties
facing the Group and its parent company.
Safety and the Environment
Belships aims to minimise environmental impact from
its activities and strives to improve safety. Measures
are taken to prevent and minimise the impact on the
environment. Belships is actively dedicated to enhancing
standards, both onboard its vessels and within its
shore-based operations. Pollution from ship operations
is governed by several national and international
environmental standards and certifications. Belships fully
complies with official requirements concerning safety
and environmental standards. All our ships are equipped
to meet regulatory standards and requirements and the
modern fleet of Belships represents lower emissions and
energy consumption compared to industry averages.
There were no serious or material incidents in 2023.
Organisation
Belships is headquartered in Oslo, from where it conducts
financial, strategic development and investor relations
together with the overall management of the Group’s
activities. Chartering and commercial operations are
handled from Lighthouse Navigation’s offices in Bangkok
and Oslo. Technical management including crewing is
managed by Belships Management Singapore, a former
subsidiary of Belships, sold to V.Group during the fiscal year.
Belships established a strategic partnership with
V.Group for its fleet and ship management business,
with Belships Management (Singapore) remaining the
exclusive provider of ship management services to
Belships ASA post-acquisition.
The Group employed 106 office staff at the end of 2023.
Ships under technical management employed 494
officers and crew members. Sick leave was less than
2 per cent in 2023. The Group was not subject to any
serious work-related accidents in 2023. We are an equal
opportunity employer with all qualified applicants
receiving consideration for employment. The working
environment in the companies within the Group is
considered good.
Belships ASA has purchased and maintains a liability
insurance that covers potential liabilities for the Board of
Directors and executive management of the Company.
Corporate Social Responsibility
Belships is a shipping company with global reach and
a hundred years of history. The Board is well aware
of the direct and indirect impact Belships’ activities
have on the outside world as well as the Company’s
shareholders. Belships is determined to create long-
term shareholder values and at the same time act
as a responsible participant in the society. The most
important issues for our business and our shareholder in
respect of Corporate Social Responsibility (CSR) are:
◉ Environment
◉ Human and labour rights
◉ Anti-corruption
It is our policy to follow the standards, laws and
regulations set by the national and international maritime
regulatory authorities, but we also strive to uphold moral
and ethical behaviour as part of our culture.
Please refer to our Human Rights Policy published on our
website, which covers the reporting required according to
the Norwegian legislation introduced in the Transparency
Act.
Belships reports on safety and environment in the
annual report. Belships does not tolerate any corrupt
practices with our suppliers, customers or government
entities affecting our business. Belships pays attention to
the working conditions and safety within our operations.
Please see the separate statement of corporate social
responsibility.
Corporate Governance
Belships’ goals and strategy are based on sound
principles of corporate governance. The Company has
been listed on the Oslo Stock Exchange since 1937,
18
BELSHIPS
ANNUAL REPORT 2023
and is subject to the Norwegian Accounting Act, the
Securities Trading Act, and the Public Limited Company
Act. Belships follows the Norwegian code of good
corporate governance of 14 October 2021. Please see the
separate statement of corporate governance on page 79.
Outlook
The Baltic Exchange Supramax index is currently about
USD 14 500, with Ultramax bulk carriers earning about
USD 17 000 in the spot market. The FFA market (Forward
Freight Agreements) has improved and currently indicates
that the market will retain this level for the rest of the year.
This is a significant improvement in sentiment, and if it
materialises, we would expect a meaningful increase in
ship values compared to the start of the year.
Lighthouse Navigation continues to deliver good results,
and posted consecutive profits every quarter in 2023,
which display good risk management and execution
skills. Activity has been positive so far in 2024 and we
expect continued profitability contributing to Belships’
dividend capacity.
Belships has contract coverage ensuring significantly
higher profitability than the current spot market. 42 per
cent of ship days in 2024 are covered at about USD
16 700 per day.
Furthermore, we now have nine vessels chartered out
on floating rate, index-linked contracts. This is because
we believe the rates and market sentiment has a good
probability of improving during the year, and Belships
has the right to convert to fixed rate during the charter
period. All period contracts are fixed with highly
reputable and recognised charterers in the dry bulk
market.
Belships financing has been secured for many years
ahead, and most of the debt is with fixed interest rates
significantly below current market levels, mainly due to
favourable leasing terms. Belships is therefore able to
combine meaningful leverage with a low cash breakeven
of USD 10 900 per day per vessel in 2024.
With eight Ultramax newbuildings under construction for
delivery between 2024 and 2027, Belships will be taking
over new vessels whilst the orderbook and the rate of
supply growth approaches the lowest levels in 30 years.
Since they are all leased without Belships investing any
cash, this will not affect our dividend capacity before
delivery. We believe the best way for Belships to approach
the green shift is to own and operate the most efficient
vessels currently available, with a financing structure
which gives us unparalleled optionality and flexibility.
We are focused on financial discipline and returning
capital to our shareholders. A competitive return for
our shareholders is to be obtained through an increase
in the value of the Company’s shares and the payment
of dividends, as measured by the total return. Since we
announced a new dividend policy in Q2 2021, we have
returned a total of NOK 8.70 per share (USD 224.3m) to
shareholder and at the same time we have continued to
deliver profitable growth and fleet expansion.
Based on Belships’ current contract coverage and
market expectations, we expect to generate free cash
flow and continue to pay quarterly dividends.
Oslo, 10 April 2024 Peter Frølich
Chair of the Board
Sten Stenersen
Board member
Jorunn Seglem
Board member
Marianne Møgster
Board member
Frode Teigen
Board member
Carl Erik Steen
Board member
Birthe Cecilie Lepsøe
Board member
Lars Christian Skarsgård
Chief Executive Officer
19
BELSHIPS
ANNUAL REPORT 2023
The Board and Chief Executive Officer have today
considered and approved the annual report and financial
statements for the Belships Group and its parent company
Belships ASA for 2023.
The Board has based this declaration on reports and
statements from the Group’s chair and CEO, on the
results of the Group’s activities and on other information
that is essential to assess the Group’s position, provided
to the Board of the parent company under obligation by
the Group’s administration and subsidiaries.
To the best of our knowledge:
◉ the 2023 financial statements for the Group and
parent company have been prepared in accordance
with all applicable accounting standards
◉ the information provided in the financial statements
gives a true and fair representation of the Group and
parent company’s assets, liabilities, profit and overall
financial position as of 31 December 2023
◉ the annual report provides a true and fair overview
of:
– the development, profit and financial position of
the Group and parent company
– the most significant risks and uncertainties facing
the Group and the parent company
Directors’ responsibility statement
Oslo, 10 April 2024 Peter Frølich
Chair of the Board
Sten Stenersen
Board member
Jorunn Seglem
Board member
Marianne Møgster
Board member
Frode Teigen
Board member
Carl Erik Steen
Board member
Birthe Cecilie Lepsøe
Board member
Lars Christian Skarsgård
Chief Executive Officer
20
BELSHIPS
ANNUAL REPORT 2023
Supramax and Ultramax bulk carriers are very versatile, equipped with cranes (“geared”) in order to load and discharge a mul-
titude of cargoes, and can enter most ports of the world. All of our ships are of eco-design combining high cargo capacity with
lower fuel / energy consumption.
Vessel Type Built DWT Yard Flag
BELVICTORY Ultramax 2027 64 000 Japan TBA
BELTEMPO Ultramax 2027 64 000 Japan TBA
BELROSSO Ultramax 2026 64 000 Japan TBA
BELAVANTI Ultramax 2026 64 000 Japan TBA
BELFUTURE Ultramax 2026 64 000 Japan TBA
BELFORTUNE Ultramax 2025 64 000 Japan TBA
BELFOX Ultramax 2025 64 000 Japan TBA
BELGRACE Ultramax 2024 64 000 Japan TBA
BELMONDO Ultramax 2023 64 000 Imabari Norwegian
BELYAMATO Ultramax 2022 64 000 Imabari Norwegian
BELTOKYO Ultramax 2021 64 000 Imabari Norwegian
BELFORCE Ultramax 2021 61 000 Dacks Norwegian
BELKNIGHT Ultramax 2021 61 000 Dacks Norwegian
BELTRADER Ultramax 2021 61 000 Dacks Norwegian
BELGUARDIAN Ultramax 2021 61 000 Dacks Norwegian
BELMAR Ultramax 2021 64 000 Imabari Norwegian
BELFAST Ultramax 2021 64 000 Imabari Norwegian
BELAJA Ultramax 2020 61 000 Shin Kurushima Norwegian
BELMOIRA Ultramax 2020 61 000 Shin Kurushima Norwegian
BELFUJI Ultramax 2020 63 000 Imabari Panama
BELNIKE Ultramax 2020 63 000 Imabari Marshall Islands
BELTANGO Ultramax 2020 64 000 Mitsui Panama
BELFORTE Ultramax 2019 64 000 Mitsui Singapore
BELRAY Ultramax 2019 61 000 Shin Kurushima Norwegian
BELNIPPON Ultramax 2018 63 000 Imabari Norwegian
BELAFONTE Ultramax 2017 63 000 Imabari Norwegian
BELHAVEN Ultramax 2017 63 000 Imabari Norwegian
BELTIGER Ultramax 2017 63 000 New Times Norwegian
BELISLAND Ultramax 2016 61 000 Imabari Norwegian
BELINDA Ultramax 2016 63 000 Hantong Norwegian
BELMONT Ultramax 2016 63 000 Hantong Norwegian
BELATLANTIC Ultramax 2016 63 000 Hantong Norwegian
BELLIGHT Ultramax 2016 63 000 New Times Norwegian
BELFRIEND Supramax 2016 58 000 Tsuneishi Norwegian
BELTIDE Supramax 2016 58 000 Tsuneishi Norwegian
BELFOREST Ultramax 2015 61 000 Imabari Norwegian
BELHAWK Ultramax 2015 61 000 Imabari Norwegian
BELSOUTH Ultramax 2015 63 000 Hantong Norwegian
Total Average built DWT
38 Vessels 2020 2 379 000
Fleet overview
Directors’ responsibility statement
21
22
Consolidated
financial
statements
Consolidated financial
statements
24 Consolidated statement of income
25 Consolidated statement of comprehensive income
26 Consolidated statement of financial position
28 Consolidated statement of cash flow
29 Consolidated statement of changes in equity
30 Notes to the consolidated accounts
30 Note 1 General information
31 Note 2 Accounting principles
35 Note 3 Estimates and judgement
35 Note 4 Revenue
36 Note 5 Segment information
38 Note 6 Ships and other fixed assets
40 Note 7 Interest-bearing debt
41 Note 8 Bank deposits
41 Note 9 Related parties
41 Note 10 Receivables and liabilities
42 Note 11 Investments and group companies
44 Note 12 Equity
45 Note 13 Earnings per share
46 Note 14 Salaries, number of employees
47 Note 15 Other general administrative expenses
48 Note 16 Options to employees
49 Note 17 Financial market risk
51 Note 18 Taxes
52 Note 19 Operating expenses
53 Note 20 Discontinued operations
54 Note 21 Environmental issues
54 Note 22 Contingencies
54 Note 23 Subsequent events
23
USD 1 000 Note 2023 2022
Operating income
Gross freight income 563 441 926 494
Voyage expenses -139 085 -204 769
Net freight income 424 356 721 725
Management fees 3 408 4 228
Total operating income 4,5 427 764 725 953
Operating expenses
Share of result from j/v and associated companies 11 6 407 30 963
T/C hire expenses 7 -194 155 -450 524
Ship operating expenses 19 -60 865 -55 571
Operating expenses ship management 19 -16 306 -22 209
Payroll expenses 14 -3 841 -5 250
Other general administrative expenses 15 -1 392 -1 818
Total operating expenses -270 152 -504 409
EBITDA 157 612 221 544
Depreciations and amortisation 6 -45 738 -38 992
Gain on sale of ships 316 22 274
Other gains/(losses) 350 1 342
Operating result (EBIT) 112 539 206 168
Financial income and expenses
Interest income 2 527 958
Interest expenses 7,10 -33 184 -26 106
Other financial items 2 065 -1 877
Currency exchange gain/(loss) 1 049 -2 183
Net financial items -27 543 -29 208
Net result before tax 84 996 176 960
Tax 18 -7 562 -2 041
Net result from continuing operations 77 434 174 919
Result from discontinuing operation 20 8 806 141
Net result for the year 86 240 175 060
Hereof majority interests 75 895 146 886
Hereof non-controlling interests 11 10 346 28 174
Earnings per share from continuing operations (USD) 13 0.31 0.69
Diluted earnings per share from continuing operations (USD) 13 0.30 0.69
Earnings per share (USD) 13 0.34 0.69
Diluted earnings per share (USD) 13 0.34 0.69
Consolidated statement
of income
24
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
USD 1 000 Note 2023 2022
Net result for the year 86 240 175 060
Other comprehensive income not to be reclassified to
profit or loss in subsequent periods:
Actuarial gain/(loss) on defined benefit plan 0 13
Items that may be subsequently reclassified to profit or (loss):
Exchange differences -29 -129
Total comprehensive income 86 211 174 944
Hereof majority interests 75 870 146 770
Hereof non-controlling interests 10 342 28 174
Majority interests from continuing operations 67 064 146 629
Majority interests from discontinuing operations 8 806 141
Consolidated statement of
comprehensive income
25
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
USD 1 000 Note 2023 2022
ASSETS
Non-current assets
Tangible fixed assets
Ships 6 731 596 747 042
Prepayment of ships 0 6 900
Property, Plant and Equipment 6 883 3 702
Total fixed assets 732 479 757 644
Financial fixed assets
Investments in j/v and associated companies 11 9 934 29 483
Cash and cash equivalents (restricted) 8 0 113
Other non-current receivables 2 956 963
Total financial assets 12 890 30 559
Total non-current assets 745 370 788 203
Current assets
Bunker inventory 8 556 14 675
Trade debtors 4 028 14 885
Other receivables 10 46 634 42 659
Cash and cash equivalents (restricted) 8 171 2 638
Cash and cash equivalents 8 128 105 137 233
Total current assets 187 495 212 090
  932 864 1 000 293
Consolidated statement
of financial position
As at 31 December
26
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
USD 1 000 Note 2023 2022
EQUITY AND LIABILITIES
Equity
Paid-in capital 141 736 158 359
Retained earnings 128 935 98 864
Non-controlling interests 34 890 40 112
Total equity 12 305 561 297 335
Liabilities
Non-current liabilities
Pension obligations 954 865
Deferred tax 18 6 537 107
Long-term interest-bearing debt 7 536 668 555 202
Other non-current liabilities 0 757
Total other non-current liabilities 544 160 556 931
Current liabilities
Current portion of interest-bearing debt 7 26 735 50 053
Tax payable 18 1 066 1 842
Public taxes and duties payable 266 5 517
Trade creditors 7 845 6 909
Other current liabilities 10 47 231 81 706
Total current liabilities 83 144 146 027
Total liabilities 627 303 702 958
  932 864 1 000 293
Consolidated statement
of financial position
As at 31 December
Oslo, 10 April 2024 Peter Frølich
Chair of the Board
Sten Stenersen
Board member
Jorunn Seglem
Board member
Marianne Møgster
Board member
Frode Teigen
Board member
Carl Erik Steen
Board member
Birthe Cecilie Lepsøe
Board member
Lars Christian Skarsgård
Chief Executive Officer
27
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
USD 1 000 Note 2023 2022
CASH FLOW FROM OPERATIONS
Net result before tax 84 996 176 960
Adjustments to reconcile result before tax to net cash flows:
Depreciations/impairment on fixed assets 6 45 738 39 031
Gain on sale of ships 6 -666 -23 616
Share-based compensation expense 16 1 278 1 057
Share-based compensation payment 16 0 -8 150
Difference between pension expenses and paid pension premium 0 13
Share of result from j/v and associated companies 11 -6 407 -31 065
Dividend received from j/v and associated companies 11 26 204 14 646
Net finance costs 27 543 29 208
Working capital adjustments:
Change in trade debitors and trade creditors 0 4 297
Change in other current items -24 910 310
Interest received 2 527 962
Interest paid 7 -33 184 -26 106
Financing costs -700 -1 270
Income tax paid 18 -1 526 -4 718
Net cash flow from operating activities 120 893 171 559
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from sale of ships 6 27 082 66 097
Proceeds from sale of shares in subsidiary 10 666 0
Payment of ships 6 0 -86 580
Payment of other investments -1 848 -2 516
Net cash flow from investing activities 35 900 -22 999
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from non-current debt 7, 17 18 900 66 569
Repayment of non-current debt 7, 17 -108 272 -37 014
Dividend paid -79 017 -143 448
Net cash flow from financing activities -168 389 -113 893
Net change in cash and cash equivalents during the period -11 595 34 667
Cash and cash equivalents at 1 January 139 871 105 204
Cash and cash equivalents at 31 December * 128 276 139 871
*) Includes restricted cash. See note 8 for further details.
Consolidated statement
of cash flow
28
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Consolidated statement
of changes in equity
Majority interest
Paid-in Retained
Non-
Share Treasury Share Other Other controlling Total
USD 1 000 capital shares premium equity equity interest equity
2023
Equity as at 31 December 2022 59 466 -128 62 228 36 793 98 864 40 112 297 335
Share issue 0 0 0 56 0 0 56
Share-based payment expense 0 0 0 1 278 0 0 1 278
Dividend paid 0 0 0 -17 957 -40 795 -20 265 -79 017
NCI transactions 0 0 0 0 -5 004 4 701 -303
Net result for the year 0 0 0 0 75 919 10 322 86 240
Other comprehensive income 0 0 0 0 -49 20 -29
Total comprehensive income 0 0 0 0 75 870 10 342 86 211
Equity as at 31 December 2023 59 466 -128 62 228 20 170 128 935 34 890 305 561
2022
Equity as at 31 December 2021 59 466 -128 62 228 37 236 82 739 31 378 272 919
Share-based payment expense 0 0 0 1 057 0 0 1 057
Share-based compensation payment 0 0 0 -1 500 -6 650 0 -8 150
Dividend paid 0 0 0 0 -124 008 -19 440 -143 448
NCI transactions 0 0 0 0 13 0 13
Net result for the year 0 0 0 0 146 886 28 174 175 060
Other comprehensive income 0 0 0 0 -116 0 -116
Total comprehensive income 0 0 0 0 146 770 28 174 174 944
Equity as at 31 December 2022 59 466 -128 62 228 36 793 98 864 40 112 297 335
29
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 1 GENERAL INFORMATION
Belships ASA is a fully integrated owner and operator of dry bulk ships. Belships ASA is a public limited liability company that is incorporated and
domiciled in Norway and listed on the Oslo Stock Exchange. The head office is located at Lilleakerveien 6D in Oslo, Norway. Copies of the consolidated
financial statements may be downloaded from www.belships.com, or by inquiry to the Company’s head office. The consolidated financial statements
have been approved by the Board on 10 April 2024.
Belships has obtained approval from Oslo Stock Exchange and Norwegian tax authorities to publish its financial statements only in English.
NOTE 2 SUMMARY OF THE MOST IMPORTANT ACCOUNTING PRINCIPLES USED
A) BASIS OF PREPARATION
The consolidated financial statements of Belships ASA (the Parent Company), and its subsidiaries (the Group), have been prepared in accordance with
IFRS® Accounting Standards as adopted by the EU. The Group accounts have been prepared on a historical cost basis, except for derivatives and shares
held for trading, which are measured at fair value. The Group accounts are presented with uniform accounting principles for identical transactions and
events under otherwise identical conditions. The annual accounts are presented on a going concern basis. The Board considers that the conditions for
a going concern are in place.
B) CONSOLIDATION PRINCIPLES
Control is established when the Group is exposed to variable returns from its association with the investee and possesses the authority to influence
those returns through its control over the investee. The process of consolidating a subsidiary commences upon the Group gaining control over it and
concludes when the Group relinquishes control. Unrealised gains arising from transactions with affiliated companies are eliminated by offsetting the
Group’s share of the company/enterprise. Similarly, unrealised losses are eliminated, but only if there is no indication of impairment on the asset being
transferred internally.
C) CURRENCY TRANSACTIONS
Functional currency and reporting currency
Accounting transactions undertaken by respective Group companies use the currency ordinarily used by the financial environment in which they oper-
ate (functional currency). The Group accounts are presented in USD. The accounts for the units in the Group which have a functional currency different
from the Group’s reporting currency, convert their accounts into the reporting currency according to the following guidelines:
◉ Assets and debts are converted according to conversion rates on the balance sheet date
◉ Income and costs are converted according to yearly average conversion rates
Transactions in foreign currency
Transactions in foreign currency are converted to the functional currency at the rate at time of the transaction. Monetary items in foreign currency
are converted into functional currency using the rate at the balance sheet date. Non-monetary items which are measured at historical cost expressed
in foreign currency, are converted into functional currency using the currency rate at the time of the transaction. Non-monetary items, which are
measured at fair value expressed in foreign currency, are converted at the currency rate on the date of measurement. Currency rate changes are
recognised continuously against profit and loss during the accounting period. Currency rates at year end was NOK 0.0983 (0.1014) and SGD 0.7578
(0.7199).
D) ACCOUNTS RECEIVABLE
Trade and other receivables are measured at transaction price upon initial recognition and subsequently measured at amortised costs.
Notes to the
consolidated accounts
All amounts in the notes are in USD 1 000 unless otherwise stated
30
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Note 2 Accounting principles
E) TANGIBLE FIXED ASSETS
Tangible fixed assets are measured at acquisition cost, net of accumulated depreciation and impairments losses. When assets are sold or divested,
the carrying amount is deducted and any gains or losses are recognised in the profit and loss account. Acquisition cost for tangible fixed assets is the
purchase price, including taxes and charges, and expenses directly related to preparing the asset for use. Expenses incurred after the asset has been
put to use, are recognised in the profit and loss account, whereas other expenses which are expected to create future financial gains are capitalised.
An estimated docking element is recognised as a separate component of the ship for depreciation purposes on the first occasion a ship is booked in
the accounts. The amount corresponds to the estimated docking costs for the period. The docking component is depreciated on a straight-line basis
over the period to the next planned drydocking. Residual value has been taken into account, and this is estimated based on steel value of the ship at
the balance sheet date less estimated cost to demolish the ship. Book value is compared to market value and value in use to assess the need for any
further impairment compared to the ordinary depreciation plan.
At the end of each reporting period, every fixed asset is assessed for impairment indicators as described under section M) Impairment of assets.
The depreciation period and method are assessed annually and are based on the management’s estimates of the ships’ future useful life. The same
applies to residual value. In accordance with IFRS, the ships have been separated into components for depreciation purposes. The ships excluding
capitalised drydocking are depreciated as one unit, as the value of any part of the ship with a useful lifetime other than 25 years is considered to be
insignificant. Depreciation is calculated on a straight-line basis over the estimated useful life of the ships taking its residual value into consideration.
The useful life, which is also considered as the economic life of the ships, has been estimated to 25 years. Residual value is estimated based on steel
prices of the ships less cost to demolish and is reassessed every year-end. Dry docking expenses are depreciated until next planned dry docking, typi-
cally 30-60 months. Other assets have a useful life of 3-5 years.
F) LEASING
The liability arising from leasing agreements is recognised at net present value of remaining lease payments, discounted using the interest rate implicit
in the lease. Interests are charged to the statement of income over the lease period. The associated right-of-use asset equals the initial lease liability
adjusted for payments made before the lease commencement date and initial direct costs. After the commencement date, the right-of-use asset is
depreciated in accordance with the requirements in IAS 16 Property, Plant and Equipment. At the end of each reporting period, every right of use asset
is assessed for impairment indicators as described under section O) Impairment of assets. The Group has chosen the option to allocate the service
component embedded in all long-term time charter contracts to ship operation expenses. The Group has also elected to use the recognition exemp-
tions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term
leases), and lease contracts for which the underlying asset is of low value (low-value assets).
G) FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised when the Company becomes party to the contractual obligations of the relevant instrument.
The Company classifies its financial instruments in the following categories: at fair value through profit and loss (FVTPL) or at amortised cost. The
Group determines the classification of financial instruments at initial recognition. Currently, the Group does not apply hedge accounting.
Classification and measurement
Financial instruments at fair value through profit and loss
This category comprises financial assets and liabilities held for trading, including all derivative instruments. Financial instruments in this category are
initially recorded at fair value, and transaction costs are expensed in the consolidated statement of profit and loss. Realised and unrealised gains and
losses arising from changes in the fair value are included in the consolidated statements of profit and loss in the period in which they arise.
Financial instruments at amortised cost
Financial assets and liabilities in this category are initially recognised at fair value, and subsequently carried at amortised cost, using the effective
interest method less any allowance for impairment. This category includes accounts receivable, accounts payable, loans, lease liabilities and other
borrowings.
Financial assets at Fair value through profit and loss (FVTPL)
The Group currently has equity investments (see note 11) in unlisted shares. Financial assets at FVTPL are carried in the statements of financial posi-
tion at fair value with net changes in fair value recognised in profit or loss.
Impairment of trade receivables and contract assets
At each reporting date, the Company measures the loss allowance for the trade receivables and contract asset at an amount equal to the lifetime
expected credit losses. For accounts receivables and contract assets, the Group uses a simplified approach in calculating expected credit losses. The
Company recognises a loss allowance using factors including aging of accounts, historical experience, customer concentration, customer creditworthi-
ness and current industry and economic trends. An impairment loss, amounting to any difference between the carrying amount of the loss allowance
and the expected credit losses at the reporting date, is recognised in the consolidated statement of profit and loss. Expected credit loss is immaterial.
31
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Derivative financial instruments and hedging
The Group uses derivative financial instruments to reduce its exposure to bunker prices and the freight market. Derivative instruments are recognised
in the consolidated statements of financial position at their fair values. Realised and unrealised gains and losses attributable to derivative instruments
are recognised as other financial items, net, as they arise.
Financial liabilities
Financial liabilities are classified at initial recognition as financial liabilities at FVTPL, loans and borrowings or payables. All financial liabilities are
recognised initially at fair value and, in the case of loans/borrowings and payables net of directly attributable transaction costs. The Group’s financial
liabilities include trade and other payables and loans. The subsequent measurement depends on classification. No financial liabilities have currently
been designated at FVTPL. Interest-bearing loans are after initial recognition measured at amortised cost using the effective interest rate method.
Gains and losses are recognised in profit or loss when the liability through the amortisation process or when derecognised.
Fair value estimation
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date, using assumptions that market participants would use when pricing the asset or liability.
All assets and liabilities for which fair values are measured or disclosed in the financial statements are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted market prices included in Level 1 are directly or indirectly observable.
Level 3: Inputs are unobservable.
H) EQUITY
(i) Debt and equity
Financial instruments are classified as debt or equity according to the underlying substance of the contractual agreement. Interest, dividend, gains,
and losses related to a financial instrument classified as debt, is presented as income or expense.
(ii) Treasury shares
Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or
loss on the purchase, sale, issue, or cancellation of the Group’s own equity instruments. Any difference between the carrying amount and the consider-
ation, if reissued, is recognised in share premium. Share options exercised during the reporting period are fulfilled with treasury shares.
(iii) Costs related to equity transactions
Transaction costs directly related to equity transactions are charged directly against the equity after tax deductions.
I) REVENUE RECOGNITION
Revenue recognition in the Group relates to three different types of revenue;
◉ Time Charter (freight income)
◉ Voyage charter (freight income)
◉ Other revenues such as technical, crewing, port agency, logistical and management fees.
Time Charter
The Group considers time charter contracts to contain both lease and service components. For time charter contracts where the Group acts as lessor
and which does not transfer substantially all risks and rewards incidental to ownership of the ship are accounted as operational leases. Revenues are
recognised in accordance with IFRS 15, and the Group only recognises time charter revenue when the ships are on-hire. The contract period starts
when the ships is made available to the customer and ends on agreed return date. When the ships are off-hire the Group does not recognise any time
charter revenues except if the contracts can be negotiated with rates and for periodical maintenance days in accordance with contract, on which reve-
nue is recognised. Time charter agreements where the Group acts as lessee are accounted in accordance with IFRS 16 (See item F).
Voyage Charter
In a Voyage Charter contract, the charterer hires the ship to transport a specific agreed-upon cargo for a single voyage. The consideration for such a
contract is determined based on a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charterer is responsible for
any short loading of cargo or dead freight. The voyage charter party generally has standard payment terms of 90/95% freight paid within three to five
days after completion of loading. We have determined that our voyage charter contracts consist of a single performance obligation of transporting
the cargo within a specified period. Therefore, the performance obligation is met evenly as the voyage progresses through recognition of revenues
32
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
and costs on a straight-line basis over the estimated voyage days from the commencement of loading to completion of discharge. Costs to obtain
a voyage contract is immediately expensed as the Group has elected to apply the optional practical expedients for contracts expected to be recog-
nised within a year.
Other revenue/Management fee
The Group also provides port agency and logistical services on ships not operated by the Group. Revenue on such services is recognised over time, as
the performance obligation is satisfied over time. For such revenue, the Group has a right to consideration from the customer in an amount that corre-
sponds directly with the value to the customer of the Group’s performance completed to date. This revenue is classified as Management fees.
J) EMPLOYEE BENEFITS
Defined contribution pension scheme
All current employees in Norwegian companies are member of the Company’s defined contribution scheme. The premium is charged as incurred by
operations. Social security tax expense is recognised based on the pension plan payments.
Defined benefit pension scheme
The Company has unfunded pension liabilities. These relate to early retirement and pension to persons, that have not been included in the service
pension scheme. Pension obligations are estimated by an independent actuary, and the relevant amounts are considered to be negligible.
K) INVESTMENT IN ASSOCIATES AND JOINT VENTURES
A joint venture is a type of joint arrangement whereby the parties that have joint control have the right to the net assets of the joint venture. Joint con-
trol is the contractually agreed sharing of control of the arrangement, which exists only when decisions about relevant activities require unanimous
consent of the parties sharing control. An associate is an entity in which the Group has significant influence. Significant influence is the power to par-
ticipate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.
The Group’s investments in joint ventures and associates are accounted for by using the equity method. Under this method, the investment is initially
recognised at cost. Goodwill relating the associate or joint venture is included in the carrying amount of the investment and not tested for impairment
individually. The income statement reflects the Group’s share of the net result after tax of the associate or joint venture. Any change in other compre-
hensive income of the associate or joint venture is presented separately in the Group’s other comprehensive income.
L) TAXES ON INCOME
Tax expenses consist of tax payable and changes in deferred tax. Deferred tax or tax assets are calculated on all differences between accounting
values and tax values of assets and liabilities, except for temporary differences related to investments in subsidiaries, affiliated companies, or jointly
controlled enterprises when the Group controls when the temporary differences’ reversal, which is not expected to occur in the foreseeable future.
Deferred tax assets are recognised when it is likely that the Company will generate sufficient profit for tax purposes in future periods to utilise the tax
asset. Similarly, the Company will decrease the deferred tax asset if it no longer considers it likely to utilise the deferred tax asset.
Deferred tax liabilities and deferred tax assets are measured on the basis of prevailing tax rates for the companies in the Group where temporary differ-
ences have occurred, based on tax rates that have been enacted or substantively enacted by the end of the reporting period. Tax payable is calculated
with the tax rate in the actual tax regime. Deferred tax liabilities and deferred tax assets are entered at nominal value calculated with the tax rate in the
actual tax regime and are classified as long-term liability or intangible fixed asset in the balance sheet. Tax payable and deferred tax related to equity
transactions are directly recorded against equity.
In addition to companies subject to ordinary taxation in Norway, Singapore and China, the Group consists of companies within the shipping taxation
scheme in Norway and Singapore. The deferred tax positions associated with the different tax regimes cannot be offset. A corresponding situation also
applies to tax positions between jointly controlled operations and the rest of the Group. These cannot be offset.
M) IMPAIRMENT OF ASSETS
At the end of each reporting period, each ship is assessed for impairment indicators. The same process applies when events or changes suggest
that the ship’s value might not be fully recoverable. When determining if impairments are necessary, assets are grouped based on the smallest
level with distinct and mainly separate cash flows, meaning each ship is considered individually. Impairment is calculated as the difference
between the asset’s carrying amount and the value considered as recoverable. The recoverable amount is the higher of the asset’s fair value less
cost to sell and its value-in-use to the Group. Value-in-use is calculated by discounting anticipated future cash flows from the asset. When it is
assumed that the asset’s value is lower than its carrying amount, an impairment loss is recognised. Impairment loss recognised in earlier periods
is reversed only in case of changes to the estimates used to determine the recoverable amount. However, the reversal amount can only bring the
book value after reversal to a maximum of the value it would have been recorded at if it had not been impaired previously. Such reversals are
recorded in the profit and loss statement.
33
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
N) EVENTS AFTER THE BALANCE SHEET DATE
New information after the balance sheet date regarding the Company’s financial position as of the balance sheet date is taken into consideration in
the annual accounts. Events after the balance sheet date that do not affect the Company’s financial position as of the balance sheet date, but which
will have an impact on the Company’s financial position in the future, are disclosed if significant.
O) SHARE-BASED PAYMENTS
The employees of Belships ASA have received options to purchase company shares. Market value of the awarded options is measured at time of the
award and charged to expense over the vesting period as a payroll cost with corresponding increase in other paid-in equity. The market value of the
options granted is estimated using the Black and Scholes option pricing model.
P) CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, bank deposits and other short-term and liquid investments to be redeemed within 3 months. Cash
and cash equivalents are recognised at nominal values in the balance sheet.
Q) RESTRICTED DEPOSITS
Restricted cash include all deposits in separate accounts, which will be used to cover accrued taxes withheld for employees and deposits provided as
security for certain guarantees.
R) REPORTING BY SEGMENTS
Operating segments are components of a business that are evaluated regularly by the chief operating decision maker for the purpose of assessing per-
formance and allocating resources. The Group’s chief operating decision maker is the CEO. The Group is divided into the operating segments dry bulk
and technical management. The dry bulk segment is further divided into 2 reportable segments: own ships (owned or leased) and operation/commer-
cial management (Lighthouse Navigation), which is how the information is presented to the Management and the Board. Transactions between the
business units are based on market conditions. Segment turnover, segment costs and segment results include transactions between segments.
S) CASH FLOW STATEMENT
The cash flow statement has been prepared using the indirect method. Liquid assets include cash, bank deposits (restricted and unrestricted) and
other short-term investments which can be converted to cash within 3 months. For restricted deposits, see note 8.
T) CLASSIFICATION FINANCIAL POSITION
The Group presents assets and liabilities in statement of financial position based on current/non-current classification. An asset is considered current
when it is:
◉ expected to be realised or intended to sold or consumed in normal operating cycle
◉ held primarily for the purpose of trading
◉ expected to be realised within twelve months after the reporting period
or
◉ cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current. A liability is considered current when it is:
◉ expected to be settled in normal operating cycle
◉ held primarily for the purpose of trading
◉ due to be settled within twelve months after the reporting period
or
◉ there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
The Group classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
34
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 4 REVENUE
Belships has entered into period time charters with various parties during 2023. The remaining fleet have been operated in the spot market by
Belships’ subsidiary Lighthouse Navigation. Gross earnings in 2023 per ship for the entire owned fleet amount to USD 18 992 versus BSI index of USD
11 240 gross per day. The inherent lag in our business means that when the spot markets fall, our outperformance will tend to be higher. Conversely,
when the market rises, our performance will tend to lag on a short-term basis. It is also affected by a certain number of period time charter contracts
which contribute to our contract coverage for 2024-2025.
In addition to the future lease payments from chartered out vessels on firm hire rate, Belships has entered into agreements to charter out nine vessels
on floating index-linked contracts. These vessels will earn an average premium of 116 per cent of the Baltic Supramax Index. Belships has the option to
convert any part of the remaining period to a fixed rate based on the prevailing FFA curve from time to time.
NOTE 3 USE OF ESTIMATES AND JUDGEMENT IN PREPARATION OF THE ANNUAL ACCOUNTS
Preparing the annual accounts in accordance with IFRS® Accounting Standards as adopted by the EU requires the management to use estimates and
assumptions affecting the amounts reported in the accounts with notes. The management assumptions and valuations are based on experience
and on miscellaneous other factors assumed to be reasonable and appropriate. This particularly applies to impairment assessment of ships. Future
events can entail a change in these estimates. Estimates and the underlying assumptions are evaluated on an ongoing basis. Changes in accounting
estimates are entered in the period when the changes occur. If the changes also apply to future periods, the effect is distributed over the current and
future periods and appears in the current note.
Impairment assessment – ships
At the end of each reporting period, every ship is assessed for impairment indicators. The same applies when events or changes occur that may entail
that the asset’s carrying amount may not be recovered. In assessing the need for impairments, assets are grouped at the lowest level at which there is
identifiable and predominantly independent cash inflows, which means per ship. Impairment is calculated as the difference between the asset’s carry-
ing amount and the value considered as recoverable. The recoverable amount is the higher of the asset’s fair value less cost to sell and its value-in-use
to the Group. Value-in-use is calculated by discounting anticipated future cash flows from the asset. When it is assumed that the asset’s value is lower
than its carrying amount, an impairment loss is recognised.
Impairment loss recognised in prior periods are only reversed if there are changes to the estimates used to determine the recoverable amount. How-
ever, the amount of reversal is limited such that the post-reversal book value does not exceed the value at which the asset would have been recorded
if it had not been impaired previously. These reversals are accounted for in the profit and loss statement.
Revenue types 2023 2022 Time Charter revenues 293 059 415 243 Voy age charter revenues 270 381 511 251 Other revenues 3 408 4 228 T otal 566 848 930 722 Future le ase payments from chart ered out vessels 2024 2025 2026 2027 2028 Subsequent T ot al Time Charter revenues 91 464 5 534 0 0 0 0 96 998 Voy age charter revenues 29 709 0 0 0 0 0 29 709 T otal 121 173 5 534 0 0 0 0 126 707
35
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Lighthouse 1 January - 31 December 2023 Belships Naviga tion Eliminations T otal Gross freight revenue 204 845 357 070 1 525 563 441 Voy age expenses -10 871 -130 669 2 456 -139 085 Net freight revenue 193 974 226 401 3 980 424 356 Management fees 0 7 388 -3 980 3 408 Opera ting income 193 974 233 790 0 427 764 Share of result from j/v and assoc. c ompanies 0 6 407 0 6 407 T/C hir e expenses 0 -194 155 0 -194 155 Ship opera ting expenses -58 304 -2 561 0 -60 865 Opera ting expenses ship management 0 -16 306 0 -16 306 General and adminis trative expenses -5 233 0 0 -5 233 Opera ting expenses -63 537 -206 615 0 -270 152 Opera ting result (EBITDA) 130 437 27 175 0 157 612 Depreciation and amortisa tion -38 582 -7 156 0 -45 738 Gain on sale of ship 316 0 0 316 Other gains/(losses) 0 350 0 350 Opera ting result 92 171 20 368 0 112 539 Interes t income 1 412 1 115 0 2 527 Interes t expenses -32 949 -235 0 -33 184 Other financial items 1 338 727 0 2 065 Currency gains/(-losses) -119 1 168 0 1 049 Net financial items -30 318 2 775 0 -27 543 Result before t ax 61 853 23 143 0 84 996 T ax -6 537 -1 025 0 -7 562 Net result from c ontinuing opera tions 55 316 22 118 0 77 434 Result from disc ontinuing operation 8 806 0 0 8 806 Net result 64 122 22 118 0 86 240 Hereof majority interes ts 64 122 11 772 0 75 895 Hereof non-contr olling interest s * 0 10 346 0 10 346 Assets 816 370 116 494 0 932 864 Liabilities 573 585 53 718 0 627 303 Cash flow from opera ting activities 112 892 8 002 0 120 893 Cash flow from investing ac tivities 35 900 0 0 35 900 Cash flow from financing activities -141 161 -27 228 0 -168 389 * Non-contr olling interest s is mainly related t o the subsidiaries Lighthouse Navigation Management AS (50.50%) and Lighthouse Navig ation Pte Lt d (50.01%). See note 11.
NOTE 5 SEGMENT INFORMATION
The segment reporting aligns with the criteria established for reporting to the Chief Operating Decision Maker (CEO). Assessment of segment per-
formance is grounded in profit or loss metrics, consistently measured with those of the consolidated financial statements. While the Group centrally
manages financing and income taxes, these are allocated to respective operating segments. Transfer pricing between segments mirrors arm’s length
transactions with third parties. Operating segments engage in worldwide activities, offering shipping services across major trade routes. Given that
charterers determine trade routes on an individual basis without specific geographic focus for ships, geographical segments are not presented. The
segment reporting has been updated from 2022, with the removal of the Ship Management segment, as it pertains to discontinued operations. Please
refer to note 20 for additional information.
36
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Lighthouse 1 January - 31 December 2022 Belships Naviga tion Eliminations T otal Gross freight revenue 241 261 683 865 1 368 926 494 Voy age expenses -14 341 -193 173 2 745 -204 769 Net freight revenue 226 920 490 692 4 113 721 725 Management fees 0 12 041 -7 813 4 228 Opera ting income 226 920 502 733 -3 700 725 953 Share of result from j/v and assoc. c ompanies 0 30 963 0 30 963 T/C hir e expenses -1 747 -448 777 0 -450 524 Ship opera ting expenses -56 551 -2 720 3 700 -55 571 Opera ting expenses ship management 0 -22 209 0 -22 209 General and adminis trative expenses -7 068 0 0 -7 068 Opera ting expenses -65 366 -442 743 3 700 -504 409 Opera ting result (EBITDA) 161 554 59 990 0 221 544 Depreciation and amortisa tion -33 142 -5 850 0 -38 992 Gain on sale of ship 22 274 0 0 22 274 Other gains/(losses) 0 1 342 0 1 342 Opera ting result 150 686 55 482 0 206 168 Interes t income 613 345 0 958 Interes t expenses -25 737 -369 0 -26 106 Other financial items -2 163 286 0 -1 877 Currency gains/(-losses) -3 002 819 0 -2 183 Net financial items -30 289 1 081 0 -29 208 Result before t ax 120 397 56 563 0 176 960 T ax -19 -2 022 0 -2 041 Net result from c ontinuing opera tions 120 378 54 541 0 174 919 Result from disc ontinuing operation 141 0 0 141 Net result 120 519 54 541 0 175 060 Hereof majority interes ts 120 519 26 367 0 146 886 Hereof non-contr olling interest s * 0 28 174 0 28 174 Assets 833 844 166 449 0 1 000 293 Liabilities 615 296 87 662 0 702 958 Cash flow from opera ting activities 126 467 45 092 0 171 559 Cash flow from investing ac tivities -22 999 0 0 -22 999 Cash flow from financing activities -94 453 -19 440 0 -113 893 * Non-contr olling interest s is mainly related t o the subsidiaries Lighthouse Navigation Management AS (50.50%) and Lighthouse Navig ation Pte Lt d (50.01%). See note 11.
37
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 6 SHIPS AND OTHER FIXED ASSETS
Ships, owned Ships, right-to-use asset s Capitalis. Capit alis. Property, drydock. drydock. Ships plant and Ships e xpenses To t a l Ships e xpenses To t a l tot al equipm. 2023 Cost per 1 January 257 662 12 726 270 388 554 507 15 285 569 792 840 180 3 927 Additions * 0 594 594 53 553 2 254 55 806 56 401 0 Disposals -27 347 -633 -27 981 0 0 0 -27 981 -2 353 Reclassified ** 29 713 0 29 713 0 -29 932 0 -29 932 -218 Cost per 31 Dec ember 260 028 12 687 272 715 578 128 17 539 595 667 868 382 1 574 Depreciations per 1 January 40 609 6 505 47 114 40 477 5 547 46 024 93 138 225 Depreciation for the ye ar 11 097 1 744 12 840 29 334 3 098 32 432 45 272 466 Disposals -1 474 -150 -1 624 0 0 0 -1 624 0 Reclassified ** 616 0 616 -616 0 -616 0 0 Depreciations per 31 Dec 50 847 8 099 58 946 69 195 8 645 77 840 136 786 691 Book value per 31 Dec ember 209 181 4 588 213 769 508 933 8 894 517 827 731 596 883 30-60 30-60 3-5 Useful life 25 years months 25 years months ye ars *) Additions include a r evision of the BELFUJI le ase, resulting in an increase of U SD 17.6m.**) Option t o acquire BELAFONTE w as exercised in 2023. 2022 Cost per 1 January 270 248 14 724 284 972 375 807 12 747 388 554 673 526 4 195 Additions 28 012 2 753 30 765 191 923 1 354 193 277 224 042 150 Disposals -50 303 -3 567 -53 870 -18 580 0 -18 580 -72 450 -418 Reclassified * 9 705 -1 184 8 521 5 357 1 184 6 541 15 062 0 Cost per 31 Dec ember 257 662 12 726 270 388 554 507 15 285 569 792 840 180 3 927 Depreciations per 1 January 34 880 6 201 41 081 25 223 2 661 27 884 68 965 23 Depreciation for the ye ar 10 192 1 656 11 848 24 050 2 661 26 711 38 559 472 Disposals -9 656 -1 127 -10 783 -3 603 0 -3 603 -14 386 -269 Reclassified * 5 193 -225 4 968 -5 193 225 -4 968 0 0 Depreciations per 31 Dec 40 609 6 505 47 114 40 477 5 547 46 024 93 138 225 Book value per 31 Dec ember 217 053 6 221 223 274 514 030 9 738 523 768 747 042 3 702 *) BELLIGHT was in 2022 refinanc ed as a sale-leaseback while option t o acquire BELNIPPON was ex ercised.
38
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Accum. Capital. Ac cum. Built Cost or dinar y drydock. deprec. on Book Specification of the Gr oup’s ships year Ownership pric e deprec. expenses dd expens. value Belsouth 2015 100% 24 535 -7 284 1 279 -800 17 730 Belinda 2016 100% 24 569 -6 990 921 -630 17 869 Belmont 2016 100% 24 596 -6 935 986 -580 18 066 Belatlantic 2016 100% 24 360 -6 590 920 -414 18 276 Belnippon 2018 100% 32 531 -10 004 579 0 23 106 Belhaven 2017 100% 23 410 -3 372 935 -333 20 640 Beltiger 2017 100% 21 650 -2 123 1 227 -430 20 325 Beltide 2016 100% 27 000 -2 647 1 000 -433 24 920 Belfriend 2016 100% 27 000 -2 488 1 000 -400 25 112 Belafonte 2017 100% 29 713 -1 989 0 0 27 724 Ships, owned 259 364 -50 422 8 847 -4 020 213 769 Belfores t 2015 BBC 24 920 -5 197 777 -505 19 995 Belisland 2016 BBC 25 838 -5 299 739 -394 20 883 Belray 2019 BBC 27 351 -4 084 1 050 -653 23 663 Belaja 2020 BBC 26 962 -3 779 1 271 -783 23 671 Belmoira 2020 BBC 26 961 -3 780 1 233 -783 23 630 Belfas t 2021 BBC 26 964 -2 767 1 000 -583 24 613 Beltrader 2021 BBC 24 953 -2 056 1 000 -467 23 431 Belguardian 2021 BBC 24 953 -2 059 1 000 -467 23 427 Belknight 2021 BBC 25 453 -2 135 1 000 -467 23 852 Belforc e 2021 BBC 26 343 -2 145 1 000 -450 24 748 Belmar 2021 BBC 27 083 -2 237 1 000 -467 25 380 Belhawk 2015 BBC 21 437 -2 157 1 538 -433 20 384 Beltokyo 2021 BBC 32 925 -2 492 1 000 -417 31 017 Bellight 2016 BBC 22 825 -4 120 1 009 -454 19 260 Belyamat o 2022 BBC 32 013 -1 263 1 000 -217 31 534 Belmondo 2023 BBC 33 425 -1 117 1 000 -183 33 124 Belfuji 2020 TC 33 448 -7 855 0 0 25 592 Beltang o 2020 TC 32 801 -2 128 0 0 30 674 Belgrac e 2020 TC 33 981 -2 207 0 0 31 774 Belforte 2019 TC 37 368 -2 467 0 0 34 901 T exel Island 2012 TC 10 766 -10 144 0 0 623 Quanzhou 2017 TC 2 556 -905 0 0 1 650 Ships, right-to-use asset s 581 328 -72 394 16 616 -7 723 517 827 T otal fleet 840 692 -122 817 25 463 -11 743 731 596
Fleet
The Group controlled a fleet of 30 ships at the end of the year. Additionally, the Group operated two vessels under short-term lease agreements, bring-
ing the total fleet count to 32 ships. Ship transactions during the year include delivery of the newbuilding BELMONDO and sale of BELVEDERE.
Impairment tests
At the end of each reporting period, the Group assesses whether any impairment indicators are present. The Group has identified the decline in freight
rates in 2023 as an impairment indicator under IAS 36. Consequently, Belships conducted impairment tests for four of the ships at year-end. These
tests revealed significant headroom between the value-in-use and book value for all vessels.
Each ship is considered a separate cash-generating unit, and recoverable amounts were compared against carrying amounts at the end of the year.
Recoverable amounts, based on value-in-use, were derived from present value calculations of estimated cash flows over the ship’s useful life. Assump-
tions reflect management’s best estimate of economic conditions over the remaining useful life, with sensitivity mainly to revenue and cost of capital
assumptions based on current contracts and historical rates from the Baltic Supramax index (BSI-58). Operating and capital expenditure estimates
were derived from Board-approved budgets.
While climate-related factors, such as volatile market conditions and impending regulatory requirements, were considered, they did not indicate
impairment, with management noting no adverse effects on the fleet’s value.
39
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NPV of NPV of Built Leased Lease Purchase Disc ount lease pur chase Non-Vessel ye ar year Ownership maturity option ra te payments option Curr ent current BELMONDO 2023 2023 Bareboa t 2033 2027-2033 4.7% 11 654 17 012 1 323 27 342 BEL YAMA TO 2022 2022 Bareboa t 2032 2026-2032 4.4% 11 021 16 501 1 372 26 149 BEL TOKYO 2021 2021 Bareboat 2033 2025-2033 4.6% 9 244 17 977 1 394 25 828 BELFORCE 2021 2021 Bareboat 2031 2024-2031 4.6% 7 529 14 053 1 279 20 302 BELKNIGHT 2021 2021 Bareboa t 2028 2024-2028 5.2% 9 120 11 751 1 209 19 662 BEL TRADER 2021 2021 Bareboat 2031 2025-2031 5.1% 8 907 11 857 1 168 19 595 BELGU ARDIAN 2021 2021 Bareboat 2031 2025-2031 5.1% 8 907 11 857 1 168 19 595 BELMAR 2021 2021 Bareboat 2031 2025-2031 5.2% 15 389 10 137 1 169 24 357 BELF AST 2021 2021 Barebo at 2031 2025-2031 6.3% 13 059 9 521 902 21 678 BELAJA 2020 2020 Bareboa t 2027 2024-2027 5.7% 6 669 14 074 1 238 19 505 BELMOIRA 2020 2020 Bareboat 2027 2024-2027 5.7% 6 501 14 139 1 244 19 396 BELFU JI 2020 2020 Time Charter 2028 2024-2028 6.4% 8 667 17 871 787 25 748 BELNIKE 2020 2020 Time Charter 2027 2025-2027 5.0% 7 456 18 903 1 093 25 265 BEL TANGO 2020 2020 Time Charter 2027 2025-2027 5.0% 7 254 21 179 921 27 512 BELFORTE 2019 2019 Time Charter 2026 2022-2026 5.0% 5 704 21 494 810 26 388 BELRAY 2019 2019 Bareboa t 2026 2023-2026 5.6% 6 007 14 389 1 282 19 114 BELISLAND * 2016 2021 Bareboa t 2032 2024-2032 4.5% 9 193 8 437 1 442 16 188 BELLIGHT * 2016 2022 Bareboat 2032 2024-2032 4.4% 8 384 9 607 1 454 16 537 BELFOREST * 2015 2022 Bareboa t 2033 2025-2033 4.2% 8 634 11 274 1 465 18 443 BELHAWK * 2015 2021 Barebo at 2031 2024-2031 4.5% 9 736 7 086 1 538 15 285 Lighthouse Navigation v essels T exel Island 2012 2022 Time Charter 2024 N/A 5.25 % 651 0 651 0 Quanzhou 2017 2023 Time Charter 2024 N/A 5.25 % 1 666 0 1 666 0 T otal Ships 181 348 279 117 26 575 433 890 Offices N/A N/A Le ase 2021-63 N/A 5-6% 500 0 161 339 T otal le ase liabilities 181 848 279 117 26 735 434 229 *) The bareboat chart ers for BELHAWK, BELFOREST, BELLIGHT and BELISLAND are account ed for as financial liability under IFRS 9. Belships has elect ed to present these vessels under lease liabilities in the disclosur e as this better r eflects the economic subs tanc e of the entered sale leaseb ack transactions.
NOTE 7 INTEREST-BEARING DEBT
The Group’s interest-bearing debt includes lease agreements for vessels as well as bank debt. All bareboat agreements are regarded by the Group as
meeting the lease definition under IFRS 16. Long-term time charter contracts, on the other hand, comprise both lease and service components.
During the year, the initial BELFUJI lease calculation was revised to reflect the assumption of exercising the purchase option, resulting in a USD 17.6m
addition in both the right-of-use asset and the lease liability.
T/C hire expenses
T/C hire expenses of USD 194.2m relates to chartering activity in Lighthouse Navigation. Expenses comprise short-term hire of tonnage and services
from other shipowners.
Specification of lease agreements
The purchase options can be exercised at any point during the time period in the Purchase option column. The price of declaring the option decreases
over time.
40
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Payment Schedule
2024 2025 2026 2027 2028 Subsequent To t a l Lease p ayments -46 635 -46 514 -45 550 -33 756 -17 575 -11 300 -201 330 Ex ercising purchase options 0 0 -58 200 -102 200 -153 295 -29 700 -343 395 T otal -46 635 -46 514 -103 750 -135 956 -170 870 -41 000 -544 725
All lease agreements have fixed interest rates for the entire duration of the charters. The cash flow above includes interest payments. Belships has no
obligation to purchase any of the leased vessels. All purchase options are denominated in USD.
Loan facilities
The vessel BELAFONTE was financed during the year utilising the accordion tranche made available under the Group’s loan facility.
Total outstanding under the loan facilities at the end of the year was USD 102.4m. Arrangement fee and other transaction costs related to the mortgage
debt were initially recorded as a reduction of the debt in the balance sheet, and subsequently amortised over the loan period in accordance with the
amortised cost principle. The difference between the outstanding loan amount and book value is amortised financial expenses of USD 1.0m as of
year-end. The Group has several covenant requirements including requirements related to equity ratio, net working capital and available liquidity. The
Group remained compliant with all covenants during and at the end of the year.
Repayment Schedule
2024 2025 2026 2027 2028 Subsequent To t a l Inst alments 0 -9 707 -9 707 -83 824 0 0 -103 238 Interes ts -7 290 -6 129 -5 528 -1 289 0 0 -20 236 T otal -7 290 -15 836 -15 235 -85 113 0 0 -123 474
NOTE 8 BANK DEPOSITS
The Group’s bank balance amounted to USD 128 276 (139 984) at year end. Short-term restricted cash is related to employees withholding tax.
NOTE 9 RELATED PARTIES
No loans are issued, or security provided with respect to the Company’s shareholders or associated parties.
NOTE 10 RECEIVABLES AND LIABILITIES
Current receivables and other current liabilities mainly consist of accrued revenues and receivables and liabilities related to the ordinary operation of
the ships. All current receivables and liabilities are due within 12 months.
41
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 11 INVESTMENTS AND GROUP COMPANIES
Companies included in the consolidated accounts:
Ownership/ Business location Main ac tivity vo ting percent age Belships Shipholding AS Oslo Shipping 100.00% Belships Shipholding II AS Oslo Shipping 100.00% Bel Ship I AS Oslo Shipping 100.00% Bel Ship II AS Oslo Shipping 100.00% Belsouth AS Oslo Shipping 100.00% Belinda AS Oslo Shipping 100.00% Belmont AS Oslo Shipping 100.00% Belatlantic AS Oslo Shipping 100.00% Belhaven AS Oslo Shipping 100.00% Beltiger AS Oslo Shipping 100.00% Beltide AS Oslo Shipping 100.00% Belfriend AS Oslo Shipping 100.00% Belnippon AS Oslo Shipping 100.00% Belvedere Ship AS Oslo Shipping 100.00% Belafonte Ship AS Oslo Shipping 100.00% Belships Lighthouse AS Oslo Shipping 100.00% 1 Lighthouse Naviga tion Management AS Oslo Commercial management 50.50% 2 Lighthouse Naviga tion Pte Ltd Singapore Commercial manag ement 50.01% 1 Lighthouse Navigation Manag ement AS Lighthouse Navigation AS Oslo Commercial management 100.00% 2 Lighthouse Navigation Pt e Ltd Afri-Bulk Navigation Priva te Limited Singapore Commercial manag ement 100.00% Lighthouse Maritime Limited Hong Kong Commercial management 100.00% Lighthouse Navigation Co Ltd Thailand Commercial manag ement 100.00% Siam Thara Agency Co Ltd Thailand Agency 57.50%
Investment in joint venture
Ownership/ Business location voting percent age Orient Asia Lines Ltd Hong Kong 50.00% Orient Asia Lines BV The Netherlands 50.00% Lineco Holding BV The Netherlands 50.00%
42
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
The share of profit and loss and balance sheet items for investments in joint
ventures and associates are recognised based on equity method:
Orient Asia LineCo 2023 Lines Ltd Holding BV T otal Gross revenue 34 245 0 34 245 EBITDA 699 0 699 EBIT 699 0 699 Net result 699 12 341 13 040 T otal compr ehensive income 699 12 341 13 040     Non-current assets 74 10 856 10 930 Current asset s 4 509 10 011 14 520 T otal asset s 4 583 20 867 25 450 Non-current liabilities 0 0 0 Current liabilities 2 777 3 349 6 126 T otal liabilities 2 777 3 349 6 126 T otal equity opening balanc e 1 342 71 713 73 055 Profit for the ye ar 699 12 341 13 040 Capital dis tribution/reduction -309 -66 900 -67 209 T otal equity closing b alance 1 732 17 154 18 886 Owner’s interest 866 8 577 9 443 Minor share in other associa ted companies 0 0 491    *) A share of result amounting to 113 (62) in a minor associa ted comp any is not included in the table. 2022 Gross revenue 22 864 0 22 864 EBITDA 2 832 0 2 832 EBIT 2 832 0 2 832 Net result 2 832 59 174 62 006 T otal compr ehensive income 2 832 59 174 62 006     Non-current assets 0 18 888 18 888 Current asset s 6 227 53 346 59 573 T otal asset s 6 227 72 234 78 461 Non-current liabilities 0 0 0 Current liabilities 4 885 54 4 939 T otal liabilities 4 885 54 4 939 T otal equity opening balanc e 692 27 039 27 731 Profit for the ye ar 2 832 59 174 62 006 Capital dis tribution/reduction -2 832 -29 000 -31 832 T otal equity closing b alance 692 57 213 57 905 Owner’s interest 692 28 606 29 298 Minor share in other associa ted companies 0 0 185    
 
43
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 12 EQUITY
Share capital
Belships ASA’s 253 136 666 shares, each with a face value of NOK 2.00, was as of 31 December 2023 distributed among 4 864 shareholders. Each share
has one vote.
Number of shares 2023 2022 Ordinary shares, issued and paid-in per 1 Januar y 253 136 666 253 136 666 Ordinary shares, issued and paid-in per 31 December 253 136 666 253 136 666 Dividend paid (NOK per share) 2.35 4.65
Treasury shares
The Company holds 371 800 treasury shares in total with an average cost price of NOK 10.70 as of 31 December 2023.
Authorisation to issue new shares
At the Annual general meeting in 2023 the Board received authorisation to issue up to 125 million new shares.
The 20 largest shareholders in Belships ASA at 31 December 2023
Number of shares Percent age 1 KONTRARI AS 104 000 000 41.08 % 2 KONTRAZI AS 32 500 000 12.84 % 3 JAKOB HA TTELAND HOLDING AS 11 000 000 4.35 % 4 DNB BANK ASA 9 985 670 3.94 % 5 LGT BANK A G 9 350 214 3.69 % 6 WENAASGRUPPEN AS 8 149 330 3.22 % 7 JAHATT AS 5 000 000 1.98 % 8 AL MARITIME HOLDING PTE L TD 4 519 922 1.79 % 9 SAXO BANK A/S 2 607 323 1.03 % 10 ST ATE S TREET BANK AND TRUST C OMP 2 588 821 1.02 % 11 SIX SIS AG 2 269 461 0.90 % 12 UBS SWIT ZERLAND AG 2 156 958 0.85 % 13 THE BANK OF NEW YORK MELLON SA/NV 1 542 462 0.61 % 14 ST AVANGER FORVAL TNING AS 1 520 000 0.60 % 15 CITIBANK EUROPE PLC 1 192 565 0.47 % 16 THE BANK OF NEW YORK MELLON 1 033 945 0.41 % 17 SONA T A AS 1 000 000 0.10 % 18 INTERACTIVE BROKER S LLC 969 541 0.38 % 19 THE BANK OF NEW YORK MELLON 962 327 0.38 % 20 ST ATE S TREET BANK AND TRUST C OMP 952 610 0.38 % T otal 20 larg est shareholders 203 301 149 80.31 % Other shareholders 49 835 517 19.69 % T otal number of shares 253 136 666 100.00 %
44
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Number of shares owned by board members in Belships ASA
Number Outstanding of shar es options Pe ter Frølich (chair) 100 000 0 Frode T eigen 1 136 500 000 0 Carl Erik St een 179 154 0 Birthe Cecilie Lepsøe 7 500 0 Jorunn Seglem 35 000 0 Number of shares owned by the manag ement in Belships ASA Number Outstanding of shar es op tions * Lars Christian Skarsg ård, CEO 2 900 000 5 000 000 Y ngve A slaksen Gram, CF O 3 330 000 300 000 1) Includes shares held by Kontr ari AS and Kontrazi AS, comp anies controlled by F rode T eigen. 2) Includes shares held by AS T orinitamar, a comp any owned by Lars Christian Skarsg ård. 3) Includes shares held by Kryptogram AS, a c ompany owned by Y ngve Aslaksen Gram.*) See note 16 for more informa tion about separa te share option plan.
NOTE 13 EARNINGS PER SHARE
Basic earnings per share is the ratio between net result of the year attributable to ordinary equity holders (i.e. net profit with dividend deducted) and
the issued average number of shares outstanding during the period.
When calculating diluted earnings per share, net result attributable to ordinary equity holders and the number of issued average outstanding shares
are adjusted for share options. In “the denominator” all share options (see note 16) which are “in-the-money” and exercisable are taken into consider-
ation. In the calculations, share options are considered as having been converted at the time they were awarded.
Average number of shares
2023 2022 Averag e number of issued shares 253 136 666 253 136 666 T reasury shares -371 800 -371 800 Averag e number of options outst anding 1 656 592 1 537 654 Diluted aver age issued number of shares 254 421 458 254 302 520
Earnings per share
2023 2022 Net result for the ye ar 86 240 175 060 Earnings per share 0.34 0.69 Diluted earnings per shar e 0.34 0.69
45
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 14 SALARIES, NUMBER OF EMPLOYEES
2023 2022 Salaries 1 434 1 569 Social security tax 511 277 Pension expenses 108 121 Share-based payment s * 1 481 2 979 Other allowances 307 305 T otal p ayroll expenses 3 841 5 250 *) Incl. social security tax
Number of full-time office staff in 2023 was 145 (160) for the Group of which 19 in the Norwegian companies. Payroll expenses in Lighthouse Navigation
are reclassified as operating expenses management companies. See note 19 for more details.
Loan to employees
No loans to employees exist at year-end 2023.
Remuneration
CEO CFO Salar y 497 218 Share-based payment 0 176 Pension expenses 19 19 Other remunera tion 2 2 T otal 518 414
Remuneration in accordance with the Accounting Act § 7-31b is presented in note 11 in the parent company accounts. Other remuneration includes
telephone, insurance agreements etc.
Bonus
No bonus scheme was adopted for 2023.
Share options
Share options to the employees are described in note 16.
The Chief Executive Officer has a separate option scheme which is also described in note 16.
46
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Remuneration to the board
2023 2022 The Board 208 208 Audit commit tee 19 18 Nomination commit tee 5 5
Board members are not awarded share options.
The Group’s fees to the auditor (excluding vat)
2023 2022 Remunera tion for audit services 438 299 Other assuranc e ser vices 18 18 Assistance r elated to t ax 63 65 Other audit relat ed assistanc e 30 21 T otal 549 403
NOTE 15 OTHER GENERAL ADMINISTRATIVE EXPENSES
2023 2022 Office expenses 134 137 Furniture, offic e supplies 194 270 T ravelling, ent ertainment cos ts 196 58 Other ser vices 524 857 Other gener al administra tive expenses 345 496 T otal adminis trativ e expenses 1 392 1 818
Administration expenses in Singapore and Bangkok are reclassified as operating expenses ship management.
See note 19 for more details.
47
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 16 OPTIONS TO EMPLOYEES
At the Annual General Meeting (AGM) in 2022, the Board was authorised to issue up to 600 000 share options to employees. The option price is 105%
of closing share price on the day of the AGM. The authorisation is valid for two years. In accordance with this authorisation, options to buy 600 000
shares at NOK 23.00 were awarded in May 2023. Of this, 0 options have been exercised. 100 000 options from an earlier option program were exercised
in 2023.
The above mentioned option programs require a service period of 12 months before they can be exercised.
The options can be exercised after one year from the date of the AGM which approved the option program and runs unto the date of the next AGM. The
option programs include all employees in the parent company. The employees must be employed in the Company at the time when the options can
be exercised in order to have a right to exercise them.
Summary of outstanding op tions 2023 2022 Outst anding options 1 January 5 100 000 5 049 300 Awarded 600 000 5 400 000 Ex ercised -100 000 -5 349 300 Outst anding options 31 Dec ember 5 600 000 5 100 000
Employee share option plan
Fair value of options has been calculated using the Black and Scholes options pricing model. The fair value of options awarded in 2023 was NOK 2.46.
The following forms the basis for the calculation:
Share price at the time the option was awarded: The share price is set as equal to the stock exchange share price when the option was awarded.
Exercise price per option: The exercise price was 105 % of the stock exchange market price when the option was awarded.
Volatility: Historic volatility set as indication of future volatility. Expected volatility equals a historic volatility of 39%.
Duration of options: It is assumed that all employees will exercise their options when the service period has been completed.
Risk free interest rate: Interest rate used as a basis for calculating options is equal to the interest rate on government bonds over the duration of the
options, i.e. 5.00% for 2023.
Decrease in the number of employees: Expected reduction is 0.
Share option plan Chief Executive Officer
The CEO in Belships, Lars Christian Skarsgård was in March 2022 granted options to subscribe for up to five million shares in the Company with an
exercise price of NOK 18.64 per share.
The Company may honour exercised options by delivery of new shares in a share issue, by sale of existing shares, or by way cash settlement (i.e.
payment of the difference between the market price of the shares less the exercise price). Options that have not been exercised will lapse if Skarsgård
terminates his position as CEO or if he is terminated from his position with cause. If Skarsgård is terminated from his position without cause during the
first 12 months, 2/3 of the options will lapse and if he is terminated from his position without cause during the first 24 months, 1/3 of the options will
lapse. If Skarsgård is terminated without cause during the exercise period, the options will lapse unless they are exercised within three months.
The fair value of the options at time of award in March 2022 was NOK 6.89 per share. The calculated cost of USD 1 278 (excluding social security tax)
has been recognised as an expense in 2023.
48
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 17 FINANCIAL MARKET RISK
Financial market risk is considered to be the risk of changes in foreign exchange rates and interest rates that may affect the value of the Group’s assets,
obligations and future cash flows. Belships has a continuing focus on its risk exposure. Derivatives may be used to reduce financial market risk, but
are only used to hedge specific exposures. When use of derivatives is considered appropriate, only well-known conventional derivative instruments
are considered, i.e. OTC agreements such as swaps, options and forward freight agreements. Derivative transactions are only made with reputable
financial institutions. Credit risk relating to these derivatives is therefore limited. Belships is only using derivatives to reduce or limit risk related to fluc-
tuations in interest and foreign exchange rates. Financial derivatives are not used to obtain financial revenues through fluctuating interest rates, nor
are financial derivatives used when there is no underlying exposure.
INTEREST RATE RISK
Belships manages interest risk primarily through entering lease agreements with fixed interest rates. Hedging the Group’s interest exposure from the
floating bank debt is considered on an ongoing basis. Entering into interest rate hedging agreements are based on developments in the interest rate
market and internal analysis. The table below shows the sensitivity related to changes in interest rate levels. The calculation includes interest-bearing
bank debt.
Sensitivity to changes in interest rate levels
2023 2022 Change in the inter est ra te level in basis points -100/100 -100/100 Effect on result bef ore tax -259/259 1 189/-1 189
Average effective interest rate on debt (%)
2023 2022 Interes t-bearing lo ans 7.63 4.30 Financial leases 5.08 5.08
Capital structure and equity capital
The primary objective of the Group’s capital management is to achieve best possible credit rating, and to maximise the shareholders values. The
Company’s goal is to maintain an equity capital ratio of at least 35%. The equity ratio is calculated by dividing the book equity to total assets as shown
below:
2023 2022 T otal equity as at 31 Dec ember 305 561 297 335 T otal assets 932 864 1 000 293 Equity ra tio as at 31 December 33 % 30 % Interes t-bearing deb t 563 403 605 255 Other current liabilities 56 408 95 974 Cash reserves 128 276 139 871 Net debt 491 535 561 358 Equity 305 561 297 335 T otal equity and net deb t 797 096 858 693 Net debt r atio 38 % 35 %
49
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Liquidity risk
Liquidity risk is the risk that suitable sources of funding for the Group’s business activities may not be available. Prudent liquidity risk management
implies maintaining sufficient cash balances, credit facilities and other financial resources to maintain financial flexibility under dynamic market
conditions. The Group’s principal source of liquidity are operating cash flows from its operational assets. In addition to its operating cash flows, the
Group relies on the debt capital markets for long-term funding. At year-end 2023 the Group has outstanding interest-bearing debt of USD 563.4 million.
Available cash and cash equivalents amount to USD 128.3 million.
Credit risk
There will always be a credit risk related to the Group’s business. Belships monitors this risk and the strategy is to carefully select counterparts. The
customers are often recurring, historically losses have been low and the risk related to any specific customer’s insolvency or inability to compensate
for the services provided is considered low.
Currency risk
The functional currency of Belships is USD as the majority of the Group’s transactions are denominated in USD. Currency risks arise in connection with
transactions that are completed in other currencies than USD, mainly in NOK or THB. This applies mainly to administrative expenses, salaries and
declaration of ship purchase options.
Fair value measurements
The valuation has the following classification of levels for measuring fair value:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Valuation based on other observable factors, either directly (prices) or indirectly (derived from prices), than quoted prices included within
level 1 of the asset or obligation.
Level 3: Valuation based on factors not taken from observable markets (not observable assumptions). Fair value is defined as present value of future
cash flows. For the above derivatives, fair value is confirmed by the financial institution, which is counterpart. The fair values of current
financial assets and liabilities carried at amortised cost approximate their carrying amounts. The long-term liabilities have floating interest
rate with a fixed margin. The margin is considered not to have significantly changed since drawing date, thus carrying amount is considered a
reasonable estimate of fair value.
Summary of financial assets and obligations
Cash Flows Non-cash charg es Interes t 01.01.2022 Proceeds Repayment Charges New le ases 31.12.2022 Interes t-bearing lo ans 110 913 40 831 -9 414 -509 0 141 821 Financial leases 326 435 25 738 -27 600 -829 139 690 463 434 T otal 437 348 66 569 -37 014 -1 338 139 690 605 255 Cash Flows Non-cash charg es Interes t 01.01.2023 Proceeds Repayment Charges New le ases 31.12.2023 Interes t-bearing lo ans 141 821 16 500 -56 126 231 0 102 426 Financial leases 463 434 2 400 -52 146 -106 47 395 460 977 T otal 605 255 18 900 -108 272 125 47 395 563 403
The bareboat charters for BELHAWK, BELFOREST, BELLIGHT and BELISLAND are accounted for as financial liability under IFRS 9. Belships has elected to
present these vessels under lease liabilities in the disclosure as this better reflects the economic substance of the entered sale leaseback transactions.
50
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Financial liabilities measured at amortised cost
2023 2022 Interes t-bearing lo ans 102 426 141 821 Financial leases 460 977 463 434 T otal 563 403 605 255
The fair value of credit facilities and obligations under financial leases is estimated by discounting future cash flows using rates currently available
for debt on similar items. The obligations under financial leases as of 31 December 2023 reflects best timing estimate of declaring purchase options.
Further, the lease agreements are newly entered into, and there have not been any significant changes in the credit risk of the Group. Fair value of the
obligations under financial leases are therefore not considered to be materially different from book value as of the reporting date. The Group has not
made observations indicating that there has been any significant difference between the fair value and carrying amount except for unamortised loan
transaction costs.
NOTE 18 TAXES
Tonnage tax
The Companies subject to Tonnage tax are exempt from ordinary tax on their shipping income. Companies within the tonnage tax system in Norway
and in Singapore pay a tonnage fee based on the size of the ship. Tonnage tax is recognised as other operating expenses.
Ordinary taxation
Further, in Norway, Thailand and Singapore the Group has several management companies subject to ordinary income tax, with a tax rate from 17 %
to 22 %.
In Norway, the Group has a significant tax loss carried forward, currently without any convincing evidence of utilising the tax losses. Accordingly, no
deferred tax asset related to temporary differences is recorded related to the Norwegian companies within ordinary tax regime.
In Singapore and Thailand there are minimal temporary differences related to the commercial and ship management operation. In Thailand the Com-
pany has a tax payable related to ordinary company taxation of USD 419 (1 506) and payable tax in Singapore amounting to USD 96 (43).
Reconcilia tion of the year’s inc ome tax expense 2023 2022 Result for the ye ar before tax 84 996 176 960 Result from c ompanies within the tonnage t ax regime -66 656 -122 715 Net result for c ompanies subject t o ordinary company t axation 18 340 54 245 St atutory tax ra te (Norway) 22% 22% Estimat ed tax expense at s ta tutor y ra te 4 035 11 934 Net non t ax related expenses/(inc ome) 4 844 -208 Results from joint ventur e and associated c ompanies -1 410 -6 834 Differenc e between Norwegian, Singapore and Thailand regional na tional tax -1 487 -459 T ax effect of deferr ed tax asset not r ecorded in the b alance sheet including exchang e rat e effect -835 -2 393 Adjustment in respec t of priors 2 414 0 T otal inc ome tax expense/(inc ome) 7 562 2 041
51
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
Tax loss carried forward
The Group had a tax loss carried forward of 4 807 as at 31 December 2023 in Norway. No deferred tax benefits are recognised in the balance sheet.
Calculation of deferred taxes is based on temporary differences between statutory books and tax values which exist at the end of the year.
In accordance with IAS 12, tax reducing temporary differences and tax increasing temporary differences, which are either reversed or can be reversed
within the same period and jurisdiction, are assessed and recorded as a net amount.
Deferred t ax per 31 December 2023 2022 T emporary differences Deferred sale g ain/(loss) fixed asset 28 703 29 851 Property, Plant and E quipment -38 -46 Accrued option expenses -2 247 0 Pensions -182 -188 Other tempor ar y differences -4 563 1 700 T otal t emporary differences 36 887 31 317 Non-deductible interes t cos t carried forward ordinary tax regime -2 367 -2 347 T ax loss carried forward ordinary tax regime -4 807 -28 483 Net tempor ary differences 29 713 487 Nominal tax r ate on deferr ed tax 22% 22% Deferred t ax assets 0 0 Deferred t ax liability 6 537 107 Deferred t ax recognised in the Balanc e sheet 6 537 107 Deferred t ax assets not r ecognised in the Balance shee t 0 0
NOTE 19 SPECIFICATIONS OPERATING EXPENSES AND OTHER FINANCIAL ITEMS
2023 2022 Ship opera ting expenses Crew expenses 26 940 25 476 Maintenance and sp are parts 10 947 9 224 Insuranc e 3 755 3 374 Other ship opera ting expenses 19 223 17 497 T otal ship oper ating expenses 60 865 55 571 Opera ting expenses management c ompanies Administr ation cos ts 11 468 16 581 General & selling expenses 4 192 5 147 Fixed cos ts 645 481 T otal oper ating expenses management c ompanies 16 306 22 209
52
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 20 DISCONTINUED OPERATIONS
In June, Belships entered into an agreement to divest its 100 per cent shareholding in Belships Management (Singapore) Pte Ltd., a technical and crew
management company established in 1983, which currently manages dry bulk vessels for Belships ASA and other international clients. The shares
have been acquired by a company in V.Group. An office lease in Singapore is in process of being sold, and the proceeds will be received by Belships
ASA. Closing of the transaction was completed on 30th June 2023.
Furthermore, Belships entered into a strategic partnership with V.Group for Belships’ fleet and ship management business. Following the acquisition
by V.Group, Belships Management (Singapore) will continue to be the sole provider of ship management services to Belships ASA. This partnership
was formalised on 30th June 2023.
Discontinued operations
Discontinued operations include intercompany transactions between Belships Management Singapore and the ship owning companies in Belships
ASA. Deferred consideration for the office lease is included under current receivables in the balance sheet.
2023 2022 Management fees 2 569 4 768 Opera ting income from disc ontinued opera tions 2 569 4 768 Share of result from j/v and assoc. c omp. 59 102 Opera ting expenses management companies -2 050 -4 454 Opera ting expenses from discontinued oper ations -1 991 -4 352 EBITDA from disc ontinued opera tions 578 416 Depreciation and amortisa tion -20 -39 Opera ting result (EBIT) from disc ontinued operations 558 377 Interes t income 2 4 Interes t expenses 0 0 Other financial items -6 -18 Currency gains/(-losses) 26 -179 Net financial items fr om discontinued oper ations 22 -193 Result before t axes from disc ontinued opera tions 580 184 T axes -96 -43 Profit after inc ome tax of disc ontinued operations 484 141 Gain on sale of the subsidiar y after inc ome tax 8 322 0 Profit from disc ontinued opera tions 8 806 141 Hereof majority interes ts from disc ontinued operations 8 852 142 Hereof non-contr olling interest s from discontinued oper ations -46 -1 Net cash flow oper ating activities from disc ontinued operations 463 1 108 Net cash flow inves ting activities from discontinued oper ations 0 0 Net cash flow financing activities fr om discontinued opera tions -879 -78
53
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
NOTE 21 ENVIRONMENTAL ISSUES
The Company has not incurred any penalties for violating environmental rules and regulations, nor is it obligated to take any specific actions in
response.
NOTE 22 CONTINGENCIES
The Board is not aware of any material disputes the Company may be in involved in as at 31 December 2023.
NOTE 23 SUBSEQUENT EVENTS
In January, Belships voluntarily prepaid USD 13.5m of bank debt. After this Belships has four debt free vessels in the fleet.
In January, Belships entered into agreements to charter out four vessels on index-linked contracts for periods of minimum one year each. The vessel
will earn a premium of between 116-120 per cent of the Baltic Supramax Index. The vessels were delivered in Q1, after completing their previous con-
tracts. This brings the total number of vessels on floating index-linked contracts to ten.
Based on the financial results in Q4 2023 the Board declared a dividend payment of NOK 0.60 per share (USD 14.5m in total) equivalent to about 80 per
cent of the net result adjusted for minority interests.
54
BELSHIPS
ANNUAL REPORT 2023
CONSOLIDATED ACCOUNTS
55
Belships ASA
Financial
statements
Belships ASA financial
statements
57 Income statement
58 Balance sheet
60 Cash flow statement
61 Notes to the parent accounts
61 Note 1 Accounting policies
63 Note 2 Fixed assets
64 Note 3 Salaries, number of employees
65 Note 4 Options to employees
66 Note 5 Other general administrative expenses
66 Note 6 Tax
67 Note 7 Shares
68 Note 8 Intercompany balances
68 Note 9 Receivables and liabilities
68 Note 10 Bank deposits
68 Note 11 Equity
70 Note 12 Financial market risk
70 Note 13 Related parties
70 Note 14 Subsequent events
56
USD 1000 Note 2023 2022
Operating income
Other operating income 623 637
Gain on sale of lease agreements 0 9 997
Gain on sale of shares in subsidiary 7 10 851 0
Total operating income 11 475 10 635
Operating expenses
Ship operating expenses -14 -49
Payroll expenses 3, 4 -3 841 -5 250
Other general administrative expenses 5 -875 -1 139
Depreciation of fixed assets 2 -16 -91
Total operating expenses -4 747 -6 530
Operating result 6 728 4 105
Financial income and expenses
Share dividend 11 547 117 380
Interest income 276 94
Interest income on loan to subsidiary 8 -2 364 2 309
Interest expenses 0 -2
Interest expenses on loan to subsidiary 8 -2 003 -232
Other financial items 7 22 748 -3 029
Currency exchange gain/-loss -227 -2 157
Net financial items 29 978 114 363
Net result before tax 36 706 118 468
Income tax expense 6 -236 -2 005
Net result for the year 36 471 116 464
Appropriations of net result:
Transfer from/(to) other retained earnings -36 471 -116 464
Total -36 471 -116 464
Income statement
BELSHIPS
ANNUAL REPORT 2023
57
PARENT COMPANY ACCOUNTS
USD 1000 Note 2023 2022
ASSETS
Fixed assets
Tangible fixed assets
Other fixed assets 2 0 16
Total tangible fixed assets 0 16
Financial fixed assets
Shares in subsidiaries 7 450 085 144 065
Loan to subsidiaries 8 132 144 80 375
Total financial assets 582 229 224 440
Total fixed assets 582 229 224 456
Current assets
Trade debtors 0 312
Intercompany balances 8 91 218 148 444
Other receivables 2 160 291
Cash and cash equivalents 10 53 346 32 395
Total current assets 146 725 181 442
TOTAL ASSETS 728 954 405 898
Balance sheet
As at 31 December
BELSHIPS
ANNUAL REPORT 2023
58
PARENT COMPANY ACCOUNTS
USD 1000 Note 2023 2022
EQUITY AND LIABILITIES
Equity
Paid-in capital
Share capital 59 466 59 466
Treasury shares -125 -125
Share premium 62 228 62 228
Other paid-in capital 0 9 575
Total paid-in capital 121 570 131 144
Retained earnings
Other equity 115 025 126 456
Total equity 11 236 594 257 599
Liabilities
Non-current liabilities
Deferred tax 6 2 241 2 005
Pension obligations 182 188
Intercompany balances 8 109 828 47 445
Total non-current liabilities 112 251 49 638
Current liabilities
Public taxes and duties payable 193 337
Trade creditors 70 107
Intercompany balances 8 379 173 97 425
Other current liabilities 672 792
Total current liabilities 380 108 98 661
Total liabilities 492 359 148 299
TOTAL EQUITY AND LIABILITIES 728 954 405 898
Balance sheet
As at 31 December
Oslo, 10 April 2024 Peter Frølich
Chair of the Board
Sten Stenersen
Board member
Jorunn Seglem
Board member
Marianne Møgster
Board member
Frode Teigen
Board member
Carl Erik Steen
Board member
Birthe Cecilie Lepsøe
Board member
Lars Christian Skarsgård
Chief Executive Officer
BELSHIPS
ANNUAL REPORT 2023
59
PARENT COMPANY ACCOUNTS
USD 1000 Note 2023 2022
CASH GENERATED FROM OPERATIONS
Net result before tax 36 706 118 468
Adjustments to reconcile result before tax to net cash flows:
Gain on sale of lease agreements 0 -9 997
Gain on sale of shares in subsidiary -10 851 0
Depreciation of fixed assets 2 16 91
Share-based payment transaction expense 4 1 278 1 057
Share-based payment transaction payment 4 0 -8 150
Difference between pension expenses and paid pension premium 0 -13
Net finance items 7 -29 978 -114 363
Working capital adjustments:
Change in trade debitors and trade creditors 275 -1 062
Change in current intercompany balances 1 463 13 712
Change in other short-term items -2 505 912
Interest received 276 94
Interest paid 0 -2
Net other financial items 2 789 -1 356
Net cash flow from operations -559 -608
CASH FLOW FROM INVESTING ACTIVITIES
Sale proceeds from fixed asset disposals 0 129
Dividend and group contributions received 2 189 142 880
Cash issue in subsidiary 0 -55 300
Proceeds from sale of shares in subsidiary 10 666 0
Change in intercompany balances 24 900 0
Net cash flow from investing activities 37 755 87 709
CASH FLOW FROM FINANCING ACTIVITIES
Dividend paid 11 -58 752 -124 008
Change in intercompany balances 42 507 0
Instalments lease commitments 0 55 300
Net cash flow from financing activities -16 245 -68 708
Net change in cash and cash equivalents 20 951 18 393
Cash and cash equivalents at 1 January 32 395 14 002
Cash and cash equivalents at 31 December 53 346 32 395
Restricted bank deposits 10 102 110
Cash flow statement
BELSHIPS
ANNUAL REPORT 2023
60
PARENT COMPANY ACCOUNTS
Notes to the
parent accounts
NOTE 1 ACCOUNTING POLICIES
Belships ASA is an owner and operator of subsidiaries owning dry bulk ships. At the end of the year, the Group controlled a fleet of 30 ships.
The Company is also providing commercial management through subsidiaries. The Company is a public limited liability company incorporated and
domiciled in Norway and listed on Oslo Stock Exchange. The head office is located at Lilleakerveien 6D in Oslo, Norway.
The financial statements have been approved by the Board on 10 April 2024. The accounts are prepared in accordance with Norwegian Generally
Accepted Accounting Principles (NGAAP).
The accounts form part of the consolidated accounts of Belships ASA.
Belships has obtained approval from Oslo Stock Exchange and Norwegian tax authorities to only publish its financial statements in English.
All amounts in the notes are in USD 1 000 unless otherwise stated.
A) Classification of balance sheet items
Assets intended for long-term ownership or use are classified as fixed assets. Other assets inclusive accounts receivable within 12 months are classified
as current assets.
Liabilities due within 12 months, are classified as short-term liabilities. Current assets are reported at the lower of cost and net realisable value, while
current liabilities are carried at the nominal value at drawdown date.
B) Taxes on income
Tax expenses consist of tax payable and changes in deferred tax. Deferred tax/tax assets are calculated on all differences between accounting values
and tax values of assets and liabilities.
Deferred tax assets are recognised when it is likely that the Company will generate sufficient profit for tax purposes in future periods to utilise the tax
asset. Similarly, the Company will decrease the deferred tax asset if it no longer considers it likely to utilise the deferred tax asset. Deferred tax and
deferred tax asset are measured on the basis of expected future tax rates.
Deferred tax and deferred tax assets are entered at nominal value and are classified as financial fixed assets (long-term liability) in the balance sheet.
Tax payable and deferred tax related to equity transactions are directly recorded against equity.
C) Tangible fixed assets
Tangible fixed assets are measured at acquisition cost, net of accumulated depreciation and impairments losses.
When assets are sold or divested, the carrying amount is deducted and any gains or losses are recognised in the income statement. Acquisition cost
for tangible fixed assets is the purchase price, including taxes and charges and expenses directly related to preparing the asset for use. Expenses
incurred after the asset has been put to use, are recognised in the income statement, whereas other expenses which are expected to create future
financial gains are capitalised.
D) Investments in other companies
Investments in subsidiaries and jointly controlled companies are accounted for in the parent company using the cost method.
At the end of each year, each investment in subsidiaries is assessed for impairment indicators. When it is assumed that the investment’s value is lower
than its carrying amount, an impairment loss is recognised.
BELSHIPS
ANNUAL REPORT 2023
61
PARENT COMPANY ACCOUNTS
E) Accounts receivable
Accounts receivable are booked at nominal amount less expected loss.
F) Cash flow statement
The cash flow statement has been prepared using the indirect method. Liquid assets includes cash, bank deposits (restricted and unrestricted) and
other short-term investments, which can be converted to cash within 3 months. For restricted deposits, see note 11.
G) Equity
(i) Treasury shares
Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity.
No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any difference
between the carrying amount and the consideration, if reissued, is recognised in share premium. Share options exercised during the reporting
period are fulfilled with treasury shares.
(ii) Costs related to equity transactions
Transaction costs directly related to equity transactions are charged directly against the equity after tax deductions.
H) Employee benefits
Defined contribution pension scheme
All employees are member of the Company’s defined contribution scheme. The premium is charged as incurred by operations. Social security tax
expense is recognised based on the pension plan payments.
Defined benefit pension scheme
The company has unfunded pension liabilities. These relate to early retirement and pension to persons, that have not been included in the defined
contribution pension scheme. There are 3 retired persons included in this scheme. Pension obligations are estimated by an independent actuary, and
the relevant amounts are considered to be negligible.
I) Provisions
A provision is recorded when the Company has a liability (legal or constructive) as a result of a previous event, where it is likely (more likely than not)
that there will be a financial settlement as a result of this liability and that the size of the sum can be reliably determined. If the effect is considerable,
the provision is calculated by discounting the expected future cash flow with a discount rate before tax, which reflects the market’s evaluation of the
time value of money and, if relevant, risks specifically connected to the liability.
Provisions for loss-creating contracts are included when the Company’s expected income from a contract is lower than the inevitable costs which were
incurred in discharging the obligations of the contract.
J) Revenue recognition
Belships ASA provides administrative, commercial and project management services, including accounting, legal, IT, project, and office services.
Income from these services is recognised as they are rendered. Interest income is recognised using the effective interest method based on when it is
earned.
The dividend received from subsidiaries is accounted for in the same year in which the dividend has been accrued for in the subsidiary. If the dividend
exceeds the prorated share of retained earnings after the acquisition of the shares, the excess portion represents a repayment of capital and conse-
quently reduces the acquisition cost accordingly.
K) Transactions in foreign currency
Transactions in foreign currency are converted at the rate at the time of the transaction. Monetary items in foreign currency are converted into USD
using the rate on the balance sheet date. Non-monetary items which are measured at historical rates expressed in foreign currencies, are converted
into USD using the currency rate at the time of the transaction.
Currency rate changes are charged against income during the accounting period.
L) Contingent gains and losses
Provisions are made for contingent losses deemed probable and quantifiable. Contingent gains are not recognised.
BELSHIPS
ANNUAL REPORT 2023
62
PARENT COMPANY ACCOUNTS
M) Related party transactions
Transactions with related parties are carried out at market terms. See note 15 for further information.
N) Events after the balance sheet date
New information after the balance sheet date regarding the Company’s financial position as of the balance sheet date is taken into consideration in
the annual accounts.
Events after the balance sheet date that do not affect the Company’s financial position as of the balance sheet date, but which will have an impact on
the Company’s financial position in the future are revealed if significant.
O) Use of estimates in preparation of the annual accounts
The management has used estimates and assumptions that have affected assets, debt, income, costs and information on potential liabilities. This
applies particularly to share-based remuneration. Future events can entail a change in these estimates. Estimates and the underlying assumptions are
evaluated on an ongoing basis. Changes in accounting estimates are entered in the period when the changes occur. If the changes also apply to future
periods, the effect is distributed over the current and future periods.
P) Share-based remuneration
The employees in Belships ASA have received options to purchase shares in the Company. The market value of the awarded options is measured at
the time of the award and charged to expense over the vesting period as a wage cost with corresponding increase in other paid-in equity. The market
value of the options granted is estimated using the Black and Scholes option pricing model.
NOTE 2 FIXED ASSETS
2023 2022
Other fixed assets Other fixed assets
Non Non
Depreciable depreciable Depreciable depreciable
assets assets Total assets assets Total
Cost price
As at 1 January 207 0 207 506 61 567
Disposals 0 0 0 -299 -61 -360
As at 31 December 207 0 207 207 0 207
Depreciations
As at 1 January 191 0 191 278 0 278
Depreciation for the year 16 0 16 91 0 91
Disposals 0 0 0 -178 0 -178
As at 31 December 207 0 207 191 0 191
Book value at 31 December 0 0 0 16 0 16
BELSHIPS
ANNUAL REPORT 2023
63
PARENT COMPANY ACCOUNTS
NOTE 3 SALARIES, NUMBER OF EMPLOYEES
2023 2022
Salaries 1 434 1 569
Social security tax 511 277
Pension expenses 108 121
Share-based payments * 1 481 2 979
Other allowances 307 305
Total 3 841 5 250
*) Incl. social security tax
The average number of employees in 2023 was 8 (9).
Remuneration CEO CFO
Salary 497 218
Share-based payment transaction expense 0 176
Pension expenses 19 19
Other allowances 2 2
Total 518 414
Other allowances include telephone, insurance agreements etc.
Pensions
All the employees in the parent company are members of a defined contribution scheme, which is in line with the occupational pension scheme for
employees in Norway in accordance with the act on Mandatory occupational pensions. Annual payable cost is reflected in the income statements and
the Company does not have any further liabilities related to this scheme. Total pension costs amounted to 108 (121) in 2023.
Share options
For information about share options, see note 4. The CEO has a separate option scheme which also is described in note 4.
Remuneration to the Board 2023 2022
The Board 208 208
Audit Committee 19 18
Nomination Committee 5 5
Total 232 231
Board members are not awarded share options.
Guidelines for the remuneration of the executive management of Belships ASA
In conformity with the provisions of section 6-16a of the Norwegian Public Limited Liability Companies Act, the Board has prepared the following
statement on the Company’s guidelines for the remuneration of the executive management:
• Belships will have a competitive bonus scheme to ensure that the Company will have the necessary capacity and competence.
• Belships will seek to have fixed salaries at market terms. There will also be a variable part (bonuses and share options), which will be evaluated annually.
Fees to the auditor (excluding vat) 2023 2022
Remuneration for audit services 118 98
Other assurance services 12 6
Assistance related to tax matters 8 2
Other audit related assistance 2 5
Total 140 111
Loans to employees
There exist no loans to employees at year-end 2023.
BELSHIPS
ANNUAL REPORT 2023
64
PARENT COMPANY ACCOUNTS
NOTE 4 OPTIONS TO EMPLOYEES
At the Annual general meeting (AGM) in 2022, the Board was authorised to issue up to 600 000 share options to employees. The option price is 105% of
closing share price on the day of the AGM. The authorisation is valid for two years. In accordance with this authorisation, options to buy 600 000 shares
at NOK 23.00 were awarded in May 2023. Of this, 0 options have been exercised. 100 000 options from an earlier option programme were exercised in
2023.
The above mentioned option programs require a service period of 12 months before they can be exercised.
The option can be exercised after one year from the date of the AGM which approved the option program and runs unto the date of the next AGM. The
option programs include all employees in the parent company. The employees must be employed in the Company at the time when the options can
be exercised in order to have a right to exercise them.
Summary of outstanding options 2023 2022
Outstanding options 1 January 5 100 000 5 049 300
Awarded 600 000 5 400 000
Exercised -100 000 -5 349 300
Outstanding options 31 December 5 600 000 5 100 000
Employee share option plan
Fair value of options has been calculated using the Black and Scholes options pricing model. The fair value of options awarded in 2023 was NOK 2.46.
The following forms the basis for the calculation:
Share price at the time the option was awarded: The share price is set as equal to the stock exchange share price when the option was awarded.
Exercise price per option: The exercise price was 105 % of the stock exchange market price when the option was awarded.
Volatility: Historic volatility set as indication of future volatility. Expected volatility equals a historic volatility of 39%.
Duration of options: It is assumed that all employees will exercise their options when the service period has been completed.
Risk free interest rate: Interest rate used as a basis for calculating options is equal to the interest rate on government bonds over the duration of the
options, i.e. 5.00% for 2023.
Decrease in the number of employees: Expected reduction is 0.
Share option plan Chief Executive Officer
The CEO in Belships, Lars Christian Skarsgård was in March 2022 granted options to subscribe for up to five million shares in the Company with an
exercise price of NOK 18.64 per share.
The Company may honour exercised options by delivery of new shares in a share issue, by sale of existing shares, or by way cash settlement (i.e.
payment of the difference between the market price of the shares less the exercise price). Options that have not been exercised will lapse if Skarsgård
terminates his position as CEO or if he is terminated from his position with cause. If Skarsgård is terminated from his position without cause during the
first 12 months, 2/3 of the options will lapse. Similarly, if he is terminated from his position without cause during the first 24 months, 1/3 of the options
will lapse. If Skarsgård is terminated without cause during the exercise period, the options will lapse unless they are exercised within three months.
The fair value of the options at time of award in March 2022 was NOK 6.89 per share. The calculated cost of USD 1 278 (excluding social security tax)
has been recognised as an expense in 2023.
BELSHIPS
ANNUAL REPORT 2023
65
PARENT COMPANY ACCOUNTS
NOTE 5 OTHER GENERAL ADMINISTRATIVE EXPENSES
2023 2022
Office expenses 134 137
Other services 258 419
Data, office equipment a.o. 150 266
Communication, advertising 32 52
Travel expenses 84 58
Other general administrative expenses 218 208
Total 875 1 139
NOTE 6 TAX
Tax result for the year 2023 2022
Result for the year before tax 36 706 118 468
Change in temporary differences 37 4 001
Permanent differences / other -29 689 -94 709
Translation differences 199 0
Tax basis for the year 7 253 27 761
Group contribution received 0 6 209
Use of tax losses carry forward -7 253 -33 970
Basis for tax payable 0 0
Taxes payable (22%) 0 0
Total income tax expense 0 0
In accordance with NGAAP, tax reducing temporary differences and tax increasing temporary differences that are reversed, or can be reversed in the
same period are assessed and the amount recorded net.
Reconciliation of tax expense 2023 2022
Result for the year before tax 36 706 118 468
Statutory tax rate 22% 22%
Estimated tax expense at statutory rate 8 075 26 063
Permanent differences / other -6 532 -20 836
Expected tax expense 1 544 5 227
Translation differences 22 -327
Change in recognised deferred taxes 0 2 005
Change in not recognised deferred tax assets -1 330 -4 900
Actual tax expense 236 2 005
Effective tax percentage 1% 2%
BELSHIPS
ANNUAL REPORT 2023
66
PARENT COMPANY ACCOUNTS
Deferred tax per 31 December 2023 2022
Deferred sale fixed asset gain/(loss) 12 208 15 747
Revaluation long-term balances 10 769 0
Financial derivatives -5 515 0
Accrued option expenses -2 247 0
Pension obligations -182 -188
Temporary differences fixed assets -38 -46
Sum temporary differences included in change in temporary differences 14 994 21 705
Impairment loss shares in subsidiaries abroad 0 0
Tax loss carried forward -4 807 -6 401
Net temporary differences 10 187 9 112
Nominal tax rate on deferred tax 22% 22%
Deferred tax liability/assets 2 241 2 005
Deferred tax liability/assets in Balance sheet 2 241 2 005
Deferred tax assets not in Balance sheet 0 0
NOTE 7 SHARES
Business Time of Ownership/ Result of Book
office purchase Cost price Voting share Equity the year value
Shares in subsidiaries
Belships Lighthouse AS Oslo 27.01.93 1 591 100% 615 15 296 615
Belships Shipholding AS Oslo 05.02.19 84 358 100% 105 867 4 753 84 358
Belships Shipholding II AS * Oslo 20.05.21 368 112 100% 399 151 38 515 365 112
Lighthouse Navigation Management AS Oslo 09.12.85 4 34% 3 696 2 364 0
Total 450 085
In June, Belships entered into an agreement to divest its 100 per cent shareholding in Belships Management (Singapore) Pte Ltd., a technical and crew
management company established in 1983, which currently manages dry bulk vessels for Belships ASA and other international clients. The shares
have been acquired by a company in V.Group. An office lease in Singapore is in process of being sold, and the proceeds will be received by Belships
ASA. Closing of the transaction was completed on 30th June 2023, resulting in a gain of USD 10.9m.
Belships ASA has made a group contribution of USD 357m to Belships Shipholding II AS, increasing the value of its investment. Also, the Company
received group contributions from Belships Lighthouse AS and Belships Shipholding AS totalling USD 76m, of which USD 9.3m has been recognised as
financial income. Additionally, a previous impairment of Belships Lighthouse AS has been reversed, resulting in a financial income of USD 17.7m.
*) Bellight AS was merged with Belships Shipholding II AS in 2023.
BELSHIPS
ANNUAL REPORT 2023
67
PARENT COMPANY ACCOUNTS
NOTE 8 INTERCOMPANY BALANCES
No interest is calculated on current intercompany balances, as these items are only considered as ordinary operating balances.
Interest at market terms is calculated on non-current intercompany balances, and the balance fall due when the cash position allows it. Calculated
interest income and expenses on non-current intercompany balances amounted to -2 364 (2 309) and 2 003 (232) accordingly.
NOTE 9 RECEIVABLES AND LIABILITIES
All current receivables and liabilities are due within 12 months.
NOTE 10 BANK DEPOSITS
Total bank deposit amounted to 53 346 (32 395) at year-end.
Restricted funds for withholding tax for employees amounted to 102 (110) at 31 December 2023.
NOTE 11 EQUITY
Paid-in Retained
Share Treasury Share Other Other Total
capital shares premium equity equity equity
Equity per 31 December 2022 59 466 -125 62 228 9 575 126 456 257 599
Dividend 0 0 0 -10 852 -47 900 -58 752
Share-based expenses 0 0 0 1 278 0 1 278
Result for the year 0 0 0 0 36 471 36 471
Equity per 31 December 2023 59 466 -125 62 228 0 115 025 236 594
Share capital
Belships ASA’s 253 136 666 shares, each with a face value of NOK 2.00, was as of 31 December 2023 distributed among 4 864 shareholders. Each share
has one vote.
Number of shares 2023 2022
Ordinary shares, issued and paid-in per 1 January 253 136 666 253 136 666
Ordinary shares, issued and paid-in per 31 December 253 136 666 253 136 666
Dividend paid (NOK per share) 2.35 4.65
Treasury shares
The Company holds 371 800 treasury shares in total with an average cost price of NOK 10.70 as of 31 December 2023.
Authorisation to issue new shares
At the Annual general meeting in 2023 the Board received authorisation to issue up to 125 million new shares.
BELSHIPS
ANNUAL REPORT 2023
68
PARENT COMPANY ACCOUNTS
The 20 largest shareholders in Belships ASA at 31 December 2023
Number
of shares Percentage
1 KONTRARI AS 104 000 000 41.08%
2 KONTRAZI AS 32 500 000 12.84%
3 JAKOB HATTELAND HOLDING AS 11 000 000 4.35%
4 DNB BANK ASA 9 985 670 3.94%
5 LGT BANK AG 9 350 214 3.69%
6 WENAASGRUPPEN AS 8 149 330 3.22%
7 JAHATT AS 5 000 000 1.98%
8 AL MARITIME HOLDING PTE LTD 4 519 922 1.79%
9 SAXO BANK A/S 2 607 323 1.03%
10 STATE STREET BANK AND TRUST COMP 2 588 821 1.02%
11 SIX SIS AG 2 269 461 0.90%
12 UBS SWITZERLAND AG 2 156 958 0.85%
13 THE BANK OF NEW YORK MELLON SA/NV 1 542 462 0.61%
14 STAVANGER FORVALTNING AS 1 520 000 0.60%
15 CITIBANK EUROPE PLC 1 192 565 0.47%
16 THE BANK OF NEW YORK MELLON 1 033 945 0.41%
17 SONATA AS 1 000 000 0.10%
18 INTERACTIVE BROKERS LLC 969 541 0.38%
19 THE BANK OF NEW YORK MELLON 962 327 0.38%
20 STATE STREET BANK AND TRUST COMP 952 610 0.38%
Total 20 largest shareholders 203 301 149 80.31 %
Other shareholders 49 835 517 19.69 %
Total number of shares 253 136 666 100.00 %
Number of shares owned by board members in Belships ASA
Number Outstanding
of shares options
Peter Frølich (chair) 100 000 0
Frode Teigen 1 136 500 000 0
Carl Erik Steen 179 154 0
Birthe Cecilie Lepsøe 7 500 0
Jorunn Seglem 35 000 0
Number of shares owned by the management in Belships ASA
Number Outstanding
of shares options *
Lars Christian Skarsgård, CEO 2 794 900 5 000 000
Yngve Aslaksen Gram, CFO 3 330 000 300 000
1) Includes shares held by Kontrari AS and Kontrazi AS, companies controlled by Frode Teigen
2) Includes shares held by AS Torinitamar, a company owned by Lars Christian Skarsgård
3) Includes shares held by Kryptogram AS, a company owned by Yngve Aslaksen Gram
*) See note 4 for more information about separate share option plan.
BELSHIPS
ANNUAL REPORT 2023
69
PARENT COMPANY ACCOUNTS
NOTE 12 FINANCIAL MARKET RISK
Currency risk
Currency risks arise in connection with transactions that are completed in other currencies than USD and consist mainly of dividend payments and
administrative expenses in NOK. No currency hedging agreements have been entered into.
The Company does not use hedge accounting.
Credit risk
There will always exist a credit risk related to the Company’s business. Belships monitors this risk, and the strategy is to carefully select counterparts.
Historical losses have been limited.
NOTE 13 RELATED PARTIES
The Company receives a commission for acting as guarantor for mortgage debt in the subsidiaries Belships Shipholding AS and Belships Shipholding
II AS. The fee amounted to 2 884 (2 708) in 2023. The Company received a management fee of 678 (557) in 2023 from its subsidiaries for auditing,
accounting, project management and board fees.
All intercompany transactions have been conducted to market terms.
Except for the above mentioned, it has not been issued loans or provided security to or from shareholders or related parties.
NOTE 14 SUBSEQUENT EVENTS
Based on the financial results in Q4 2023 the Board declared a dividend payment of NOK 0.60 per share (USD 14.5m in total) equivalent to about 80 per
cent of the net result adjusted for minority interests.
BELSHIPS
ANNUAL REPORT 2023
70
PARENT COMPANY ACCOUNTS
71
Auditors report
PricewaterhouseCoopers AS, Kanalsletta 8, Postboks 8017, NO-4068 Stavanger
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of Belships ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Belships ASA, which comprise:
• the financial statements of the parent company Belships ASA (the Company), which comprise the
balance sheet as at 31 December 2023, the income statement and cash flow statement for the
year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and
• the consolidated financial statements of Belships ASA and its subsidiaries (the Group), which
comprise the statement of financial position as at 31 December 2023, the statement of income,
comprehensive income, changes in equity and cash flow for the year then ended, and notes to the
financial statements, including material accounting policy information.
In our opinion
• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at
31 December 2023, and its financial performance and its cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and
• the consolidated financial statements give a true and fair view of the financial position of the Group
as at 31 December 2023, and its financial performance and its cash flows for the year then ended
in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company and the Group as required by
relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International Independence Standards)
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 5 years from the election by the general meeting of the
shareholders on 23 May 2019 for the accounting year 2019.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
PricewaterhouseCoopers AS, Kanalsletta 8, Postboks 8017, NO-4068 Stavanger
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of Belships ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Belships ASA, which comprise:
• the financial statements of the parent company Belships ASA (the Company), which comprise the
balance sheet as at 31 December 2023, the income statement and cash flow statement for the
year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and
• the consolidated financial statements of Belships ASA and its subsidiaries (the Group), which
comprise the statement of financial position as at 31 December 2023, the statement of income,
comprehensive income, changes in equity and cash flow for the year then ended, and notes to the
financial statements, including material accounting policy information.
In our opinion
• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at
31 December 2023, and its financial performance and its cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and
• the consolidated financial statements give a true and fair view of the financial position of the Group
as at 31 December 2023, and its financial performance and its cash flows for the year then ended
in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company and the Group as required by
relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International Independence Standards)
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 5 years from the election by the general meeting of the
shareholders on 23 May 2019 for the accounting year 2019.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
72
BELSHIPS
ANNUAL REPORT 2023
2 / 5
The Group’s business activities are largely unchanged compared to last year. We have not identified
regulatory changes, transactions or other events that qualified as new Key Audit Matters for our audit of the
2023 financial statements. Impairment assessments of ships continues to be an area of focus this year.
Key Audit Matters
How our audit addressed the Key Audit Matter
Impairment assessments of ships
The Group holds ships with a carrying amount of
USD 731
596 thousand
on 31 December 2023. The
ships comprise 78% of total assets. Indicators of
impairment were assessed by management and
considered present for the Group’s vessels during
2023 due to decline in freight rates. As such, an
impairment test was deemed n
ecessary.
Management considered, among other, the ships’
estimated fair value less cost of sale, and assessed
market conditions in the dry bulk market, including
factors such as contract rates and contract
coverage. Management also considered other
extern
al and internal factors of relevance. The
estimated fair value less cost of sale was based on
valuation reports from two external ship brokers.
For four of the Group’s vessels, the carrying value
was lower than the fair value less cost of sale.
Consequentl
y, a value-in-use calculation for those
vessels was performed by management.
Management’s assessment of recoverable
amounts of vessels, particularly as it relates to
calculation of value
-in-use, requires estimates and
assumptions relating to operational
and market
factors and involves a high degree of judgement.
Further, the calculation of value
-in-use requires
financial modelling of the cash flows related to the
cash generating units, which can be complex and
may require use of additional judgement.
We f
ocused on impairment assessments of ships
due to the magnitude of amounts involved and the
high degree of judgement applied by management.
As always, when dealing with management
judgement and complex calculations, there is an
inherent risk of errors that
may materially impact
net profit.
Management identified no impairment recognition
for the vessels.
Refer to notes 2E, 2
M and 6 to the consolidated
financial statements,
where management explains
the
ir impairment assessment of the ships.
We evaluated and
challenged management’s
assessment of impairment indicators and the
process by which the assessment was performed.
We assessed management’s accounting policy
against the requirements in IFRS
Accounting
Standards
and obtained explanations on how the
requirements of IAS 36 were met. We also
assessed the
year-on-year consistency of the
applied
accounting policy. Furthermore, we
evaluated
management’s process and related
control activities for determining estimated
recov
erable amounts.
We obtained the valuation reports used by
management when estimating
the ships’ fair value
less cost of sale. We assessed the competence
and objectivity of the external brokers,
and
interview
ed
representatives from the broker firms to
unde
rstand how the fair value estimates were
compiled. We also satisfied ourselves that the
brokers were provided with the appropriate input to
perform an estimate of fair value, such as build
date, build location
,
and key metrics of the vessels.
We
found that management had a sufficient
understanding of the valuation reports and of the
basis of which they were prepared
. Furthermore,
we
did a reperformance of the comparison of
estimated fair values less cost of sale to the
carrying amount of each ship.
Based on the
procedures described, we agreed that value
-in-
use
calculations
were needed for four vessels.
We obtained management
’s value-in-use
calculation
s. For each cash generating unit, we
assessed the key inputs in the calculation of
value-
in
-use and assessed the mathematical and
methodological integrity of management’s
impairment models. We challenged management
on key assumptions
applied in the model. Our
procedures included tracing input data to contracts
and budget
s approved by the Board of Directors
and co
nsidering whether charter hire rates and
utili
sation were consistent with our knowledge of
the industry. We also compared management’s
assessment of charter hire to the external source;
the Baltic Index (BSI 58).
In addition, w
e compared
utilisation levels against historical utilisation for
73
BELSHIPS
ANNUAL REPORT 2023
Auditors report
3 / 5
such vessels. When we considered management’s
analysis of sensitivity, we noted that the forecasted
cash flow was sensitive to changes to assumptions,
and
, most of all, day rates.
We assessed the discount rate by
comparing the
assumptions uses to build the discount rate with
observed external market rate data and internal
data. We considered that the used discount rate
was within an appropriate range.
Overall, w
e found the assumptions applied by
management
in estimating the ships’ value-in-use
to be reasonable.
We evaluated the
disclosures to the financial
statement
and found that reasonable explanations
of the valuation process and uncertainties inherent
in the assumptions
were provided.
No matters of consequence arose from the
procedures described above.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the
Board of Directors’ report and the other information accompanying the financial statements. The other
information comprises information in the annual report, but does not include the financial statements and
our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the
Board of Directors’ report nor the other information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’
report and the other information accompanying the financial statements. The purpose is to consider if there
is material inconsistency between the Board of Directors’ report and the other information accompanying
the financial statements and the financial statements or our knowledge obtained in the audit, or whether the
Board of Directors’ report and the other information accompanying the financial statements otherwise
appears to be materially misstated. We are required to report if there is a material misstatement in the
Board of Directors’ report or the other information accompanying the financial statements. We have nothing
to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate
Governance and Corporate Social Responsibility.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true and
fair view in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and for the preparation of the consolidated financial statements of the Group
that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU.
Management is responsible for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern.
74
BELSHIPS
ANNUAL REPORT 2023
4 / 5
The financial statements of the Company use the going concern basis of accounting insofar as it is not likely
that the enterprise will cease operations. The consolidated financial statements of the Group use the going
concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's and the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company's and the Group's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company and the Group to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves a true and fair view.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
75
BELSHIPS
ANNUAL REPORT 2023
Auditors report
5 / 5
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Belships ASA, we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the annual
report, with the file name Belships ASA – Annual Report 2023 (ESEF) have been prepared, in all material
respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on
the European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the
Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual
report in XHTML format, and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation.
This responsibility comprises an adequate process and such internal control as management determines is
necessary.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF
reporting, see: https://revisorforeningen.no/revisjonsberetninger
Stavanger, 10 April 2024
PricewaterhouseCoopers AS
Tom Notland
State Authorised Public Accountant
76
BELSHIPS
ANNUAL REPORT 2023